If the Hedge Ratio for a Stock Call Is 0

question 43

Multiple Choice

If the hedge ratio for a stock call is 0.70, 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:

SWOT Analysis

A strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Market Summary

A description of the current state of the market.

BCG Matrix

A strategic business tool that classifies business units or products into four categories (Question Marks, Stars, Cash Cows, Dogs) based on market growth and market share.

Dogs

Domesticated carnivorous mammals that typically have a long snout, an acute sense of smell, non-retractable claws, and a barking, howling, or whining voice.