Black and Scholes Continued?

Question

Kazink and Taranto has given some explanation for my question but both seems to be unsatisfactory. Taranto says delta is not given when I have given delta in my question as del. He also says option price and stock price don't move in tandem he says linear, but Eugene Brigham book on Financial Management and Biermann's book on Financial control treat the matter as linear which I believe is the latest theory. Even though this is hypothetical situation, I have tried with real life IBM options and it produces similar results.
Kazink comes out with the cock and bull explanation about the block sale of 100 in which case let him rephrase my question as 1 block call option of 100 and stocks of 300 in which case the gain from sale of calls is 651 and loss in the stock is 2100 with a net loss of 1449. He said my calculation is wrong, only thing I have done here is raise the written call 3 times which makes it a block sale and hope this satisfies the reality but problem doesn't go away.

Also, Taranto and Kazni says it is N(d1) and not d1 in which case it is 0.61.
Then we sell 2 blocks of calls which gives a gain of 1400 and loss in holding close 300 stocks is 2210 with a total loss of 810 in the down side with no down side risk protection available for what is called Hedge ratio.

My earlier question was as follows,
A question about Black&Scholes Option pricing ?
Expiry Price =100, Stock price=107, time to expiry=15days, discount rate=0.05, del=0.06
d1=ln 107/100+15/360(0.05+0.06/squrt...
If I have 100 stocks to hedge I sell 31 calls from the above formula for hedge ratio d1 for say $7 price of option today and if price move to $100,
gain from writing call = 31x7 = 217
loss in stock = 7x100= - 700 with a downside loss of $483.
If this is the case then how can d1 be the hedge
ratio if it cannot protect against downside risk. This is te 'in the money' case.
Suppose if the option is 'out of money' similar result happens without any degree of protection for downside risk.

Answer 1

Looking at your other questions, it is obvious you are a troll just asking questions as a joke.