A Riskless Hedge Requires More Shares of Stock Than Call

question 39

True/False

A riskless hedge requires more shares of stock than call options.

---

Definitions:

Willingness To Pay

The maximum amount an individual is prepared to spend to procure a good or service, reflecting the value they place on it.

Consumer Surplus

The discrepancy between what consumers are prepared and can afford to pay for a product or service versus what they end up paying in reality.

Willingness To Pay

The maximum amount an individual is prepared to spend on a good or service, which reflects the value they place on it.

Consumer Surplus

The variance between what consumers are prepared to pay for a product or service and the actual amount they end up paying.