A Hedge Ratio for a Put Is Always

question 36

Multiple Choice

A hedge ratio for a put is always

• A) equal to one.
• B) greater than one.
• C) between zero and one.
• D) between negative one and zero.
• E) of no restricted value.

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Definitions:

Semiannual Compounding

Another term for compounded semi-annually, indicating that interest is added to the principal sum twice per year.

Nearest Cent

Rounding a monetary amount to the closest one-hundredth of a currency unit.

Future Value

The value of an investment or asset at a specific future date, considering factors like interest rates or earnings growth.

Nearest Cent

The process of adjusting a monetary amount to the closest one-hundredth of the currency unit, typically a dollar.