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An investor holding a portfolio worth $200,000 want to Hedge using Call options only if you been given the following information : Equity portfolio beta
An investor holding a portfolio worth $200,000 want to Hedge using Call options only if you been given the following information :
Equity portfolio beta = 1.25
Closing price for the SPY ETF was $325
Call option strike: $330.00
Call option delta: 0.544
what is the number of call contracts that the investors should sell to hedge his portfolio
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