11 The hedge ratio (delta) of an at-the-money call option on IBM is 0.18. The hedge ratio of an at-the-money put option is 0.53. What is the hedge ratio of an at-the-money straddle position on IBM? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) 1.15 points Hedge ratio ook References You would like to be holding a protective put position on the stock of XYZ Co. to lock in a guaranteed minimum value of 120 at year- end. XYZ currently sells for 120. Over the next year, the stock price will either increase by 6% or decrease by 6%. The T-bill rate is 5%. Unfortunately, no put options are traded on XYZ Co. 1.15 points a. How much would it cost to purchase if the desired put option were traded? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cost to purchase ook References b. What would be the cost of the protective put portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cost of the protective put portfolio 12 11 The hedge ratio (delta) of an at-the-money call option on IBM is 0.18. The hedge ratio of an at-the-money put option is 0.53. What is the hedge ratio of an at-the-money straddle position on IBM? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) 1.15 points Hedge ratio ook References You would like to be holding a protective put position on the stock of XYZ Co. to lock in a guaranteed minimum value of 120 at year- end. XYZ currently sells for 120. Over the next year, the stock price will either increase by 6% or decrease by 6%. The T-bill rate is 5%. Unfortunately, no put options are traded on XYZ Co. 1.15 points a. How much would it cost to purchase if the desired put option were traded? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cost to purchase ook References b. What would be the cost of the protective put portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cost of the protective put portfolio 12