Find the Hedge Ratio for a Put Option on €10,000

question 59

Multiple Choice

Find the hedge ratio for a put option on €10,000 with a strike price of $15,000. In one period the exchange rate (currently S($/€) = $1.50/€) can increase by 60% or decrease by 37.5% .

• A)-15/49
• B)8/13
• C)-5/13
• D)15/49

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