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    Exam 21: Option Valuation
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    If the Hedge Ratio for a Stock Call Is 0
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If the Hedge Ratio for a Stock Call Is 0

Question 1

Question 1

Multiple Choice

If the hedge ratio for a stock call is 0.50, the hedge ratio for a put with the same expiration date and exercise price as the call would be


A) 0.30.
B) 0.50.
C) −0.60.
D) −0.50.
E) −0.17.

Correct Answer:

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