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    Derivatives and Risk Management Study Set 2
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    Exam 4: Option Pricing Models: the Binomial Model
  5. Question
    When Calls Are Sold to Adjust the Hedge Ratio,the Funds
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When Calls Are Sold to Adjust the Hedge Ratio,the Funds

Question 1

Question 1

True/False

When calls are sold to adjust the hedge ratio,the funds must be placed in additional shares.

Correct Answer:

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