Assume a stock is currently selling for 7350 you consider a, Ask an Expert

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Assume a stock is currently selling for $73.50. You consider a call option to hedge your long position in the security. The current exercise price for the option is $75.00. Using a 1 year period, a rate of 5.5%, and an “up” factor of 1.20, and a “down” factor of .95, the hedge ratio for a perfect hedge is

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91935099

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