Question
Hi there I'm hoping a tutor can assist with the question below. You own stock in a NYSE exchange-listed healthcare company and have a hedge
Hi there I'm hoping a tutor can assist with the question below. You own stock in a NYSE exchange-listed healthcare company and have a hedge in place to lock in capital gains you have made, in case the price falls. Explain the significance of the hedge ratio to your hedging strategy. HINT: Is an option for 100 shares a perfect hedge against a long holding of 100 shares of the underlying stock?
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
