Calculate the Hedge Ratio for the Following: Call Option with Exercise

question 58

Multiple Choice

Calculate the hedge ratio for the following: call option with exercise price of $3.20,current share price of $3.10 and an expected price at the expiry of the option of either $3.40 or $2.80.

• A)3
• B)1/3
• C)1/2
• D)2/3

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Definitions:

Brown V. Board

A landmark 1954 U.S. Supreme Court case that declared state laws establishing separate public schools for Black and white students to be unconstitutional.

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all U.S. federal courts and state court cases involving issues of federal law.

Brown V. Board Of Education

A landmark 1954 U.S. Supreme Court decision that declared state laws establishing separate public schools for black and white students to be unconstitutional.

Confederate State

A state that was part of the Confederate States of America during the American Civil War, which seceded from the Union in an attempt to preserve slavery and states' rights.