Hedge Ratios for Long Call Position Are __________ and Hedge

question 65

Multiple Choice

Hedge ratios for long call position are __________ and hedge ratios for long put positions are ____________.

• A) negative; negative
• B) negative; positive
• C) positive; negative
• D) positive; positive

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Definitions:

Free Enterprise Economies

Systems where businesses operate with minimal government intervention, guided by the forces of supply and demand.

Economic Role

The function or position an entity (like an individual, company, or government) plays within an economy, influencing its structure and development.

Local Finance

Relates to the funding and financial management of local governments, including revenue generation, budgeting, and expenditure on public services at a local level.

Property Taxes

Taxes imposed on property owners by local governments, calculated as a percentage of the property's value.