A financial institution has the following portfolio of over-the counter option on sterling:

Type position delta gamma vega
Call -1000 0.50 2.2 1.8
Call -500 0.80 0.6 0.2
Put -2000 -0.40 1.3 0.7
Call -500 0.70 1.8 1.4

A traded option is available with a delta of 0.6, a gamma of 1.5, and a vega 0.8.

- What position in the traded option and in sterling would make the portfolio both gamma and delta neutral?
- How would you neutralize both vega and delta?

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