Determine two to three methods of using stocks and options to create a risk-free hedge portfolio. Support

Question:

Determine two to three methods of using and options to create a risk-free hedge portfolio. Support your answer with examples of these methods being used to create a risk-free hedge portfolio.
Create a unique hypothetical weighted average (WACC) and rate of return. Recommend whether or not the company should expand, and defend your position.
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...