If the Hedge Ratio Is 0

question 96

Multiple Choice

If the hedge ratio is 0.50,this indicates that the portfolio should hold

• A) Two shares of stock for every call option written.
• B) One share of stock for every two call options written.
• C) Two shares of stock for every call option purchased.
• D) One share of stock for every two call options purchased.
• E) Two call options for every put option written.

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