Multiple Choice
With regard to options, which of the following is not true of the hedge ratio?
A) It indicates the change in the option price for a $1 change in stock price.
B) It represents the ratio of options written to shares held long in a riskless portfolio.
C) It is frequently greater than 1.
D) It is commonly referred to as the option's delta.
Correct Answer:
Verified
Correct Answer:
Verified
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