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Is an option for 100 shares a perfect hedge against a long

You own stock in a NYSE exchange-listed healthcare company and have a hedge in place to lock in capital gains you have made, in case the price falls. Explain the significance of the hedge ratio to your hedging strategy. HINT: Is an option for 100 shares a perfect hedge against a long holding of 100 shares of the underlying stock?

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Finance Basics: Is an option for 100 shares a perfect hedge against a long

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