A Hedge Ratio for a Call Option Is ________, and a Hedge

question 58

Multiple Choice

A hedge ratio for a call option is ________, and a hedge ratio for a put option is ______.

• A) negative; positive
• B) negative; negative
• C) positive; negative
• D) positive; positive
• E) zero; zero

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Definitions:

Logrolling

The process of exchanging favors, especially in politics by reciprocal voting for each other's proposed legislation.

Social Engineering

Social engineering involves manipulating individuals into divulging confidential or personal information for fraudulent purposes.

Grandstanding

Engaging in behavior or making statements intended to attract positive attention and impress others.

Marginal Benefit

The added contentment or utility derived from utilizing or producing an extra item of a good or service.