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so ah we continue from what we are doing in the last class we were talking about how to get and hang on the option price at any time t at a for any stock price st so we will start to see what should i do when i get the premium because i had i had been taking the role of the person who has sold the option and you the viewer is a person who has bought the option from me so such an option is called a call option where you are buying the option not selling the option so now um what i would do let this is delta t with the number of shares i am holding at time t so these are the number of shares i am buying of the stock s stock that i have there is one stock in the market and one bond even one bank basically bank account so number of shares of the stock held stock held at time t so if s t is the cost of one stock at time t on one share of the stock then total worth of my stocks is delta tst is a total worth of my stock if i sell the stock at that time this is what i will get so my portfolio
