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4. The current price of a non-dividend-paying stock is $40. Over the next year it is expected to rise to $42 or fall to $37.

4. The current price of a non-dividend-paying stock is $40. Over the next year it is expected to rise to $42 or fall to $37. An investor buys one-year call options with a strike price of $41. Which of the following is necessary to hedge the position

A- Buy 0.2 Shares for each option shorted

B- sell 0.2 Shares Shares for each option shorted

C- Buy 0.8 Shares Shares for each option shorted

D- sell 0.8 Shares Shares for each option shorted

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