If the Hedge Ratio for a Stock Call Is 0

question 16

Multiple Choice

If the hedge ratio for a stock call is 0.30, the hedge ratio for a put with the same expiration date and exercise price as the call would be

• A)0.70.
• B)0.30.
• C)-0.70.
• D)-0.30.

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Definitions:

Working-Class Life

The everyday conditions and culture of those employed in lower-tier jobs, often involving manual labor, and generally characterized by lower income and limited access to resources.

Health Insurance

A form of insurance that covers the whole or part of the risk of a person incurring medical expenses, spreading the risk over a large number of persons.

Accident Insurance

A form of insurance that provides compensation and support to individuals in case of physical injury or death resulting from accidental events.

British Poor Law

Legislation enacted in the UK during the 19th century aimed at providing relief for the impoverished and regulating the conditions of workhouses where the poor were housed.