A Hedge Ratio for a Call Is Always

question 72

Multiple Choice

A hedge ratio for a call is always

• A) equal to one.
• B) greater than one.
• C) between zero and one.
• D) between negative one and zero.
• E) of no restricted value.

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Definitions:

Action Potential

A temporary reversal of the electrical polarity of the membrane of a nerve cell or muscle cell, leading to the transmission of signals along the nerve or muscle fiber.

All-or-none Law

The principle that the strength of a response of a nerve or muscle fiber is not dependent on the strength of the stimulus; if a stimulus is above a certain threshold, a nerve or muscle fiber will fire.

Action Potential

A brief electrical charge that travels down an axon, generating a nerve impulse as a response to a stimulus.

Stimulus

Any occurrence or circumstance that prompts a reaction from a living being.