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6. The current price of a non-dividend-paying stock is $40. Over the next year it is expected t rise to $42 or fall to $37.
6. The current price of a non-dividend-paying stock is $40. Over the next year it is expected t 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 for each option shorted C. Buy 0.8 shares for each option shorted D. Sell 0.8 shares for each option shorted
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