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Hello, I have a statistic question about perfectly hedging A perfect hedge is one that eliminates all risk in a position or portfolio. In other

Hello, I have a statistic question about perfectly hedging

"A perfect hedge is one that eliminates all risk in a position or portfolio. In other words, the hedge is 100% inversely correlated to the vulnerable asset"

*NO MONEY IS LOST

The question follows:

You are betting on two parties

Party A: has a return of 100$ for every 135$ invested.

Party B: every 100$ invested, a return of 115$ occurs.

Only one party can win.

How much would you charge to give us the perfect hedging strategy of an investment $4,000.

(if perfect hedging is not possible with these numbers, what would the hedging approach be?)

Thank you for your time,

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