If the Hedge Ratio for a Stock Call Is 0

question 31

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.
• E) −0.17.

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Definitions:

Vitamin C

is an essential nutrient, known scientifically as ascorbic acid, important for the repair of tissues, enzyme function, and the immune system.

Episiotomy

A surgical incision made in the perineum—the area between the anus and the vulva—to widen the vaginal opening for childbirth.

Delivery Process

The sequence of events that lead to the birth of a baby, often encompassing labor, contractions, and the actual passage of the baby through the birth canal.

Contractions

Muscle tightenings that facilitate childbirth, also used to refer to abbreviations in language.