Suppose an investor is seeking to hedge ioo shares in his


Suppose an investor is seeking to hedge Ioo shares in his portfolio and he is seek to hedge his nunbet of call options for her 100 shared purchased. assuming her her hedge ratio is 0.25 then

a. She must sell 2 calls for every 100 shares purchased

b. She must sell 4 call options for every 100 shares purchased

c. She would sell 100 shares for every 200 shares purchases

d. She muts sell 25% of hers shares to hedge her position

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Financial Management: Suppose an investor is seeking to hedge ioo shares in his
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