Multiple Choice
If the hedge ratio is 0.50,this indicates that the portfolio should hold
A) Two shares of stock for every call option written.
B) One share of stock for every two call options written.
C) Two shares of stock for every call option purchased.
D) One share of stock for every two call options purchased.
E) Two call options for every put option written.
Correct Answer:

Verified
Correct Answer:
Verified
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