If the Hedge Ratio for a Stock Call Is 0

question 15

Multiple Choice

If the hedge ratio for a stock call is 0.50, the hedge ratio for a put with the same expiration date and exercise price as the call would be

• A)0.30.
• B)0.50.
• C)-0.60.
• D)-0.50.
• E)-.17.

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Definitions:

Interactional Synchrony

The phenomenon where two individuals engaged in a conversation mirror each other's nonverbal behaviors and gestures, facilitating a sense of connection.

Expectancy Violation Theory

A theory that examines how individuals respond to unexpected behaviors of others and the significance of those behaviors.

Personal Zone

An individual's preferred physical space around them, influencing social interactions and personal comfort.

Intimate

Characterized by a close, personal, and private relationship or interaction between individuals.