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Suppose that a trader sells 10,000 European call options. How many shares of the stock are needed to hedge the position for the first and
Suppose that a trader sells 10,000 European call options. How many shares of the stock are needed to hedge the position for the first and second threemonth period? For the second time period, consider both the case where the stock price moves up during the first period and the case where it moves down during the first period.
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