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I hope nobody "rolls their eyes" too much on this one...I haven't had to
use high school algebra since HS, and I'm trying to remember how to
solve 2 formula, 2 variable equations.
(By the way, this problem is on page 441 of "McMillan On Options" and is
a formula for determining gamma-delta neutrality, just in case you have
the book)
0.030x + 0.020y =0 (gamma neutrality)
0.180x + 0.150y =-10 (Vega risk)
Solve for X and Y
Show all work
I tried to add the columns like a common addition problem, then letting
x=1 solve for y, and visa versa....I just didn't come out with the same
answer <g> Hope somebody still remembers how to do this!
Thanks
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