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Suppose that call options on stock with: time to expiration 6 months strike price $89 selling at an implied volatility of 29%. stock price $89

Suppose that call options on stock with:

time to expiration 6 months

strike price $89

selling at an implied volatility of 29%.

stock price $89 per share

risk-free rate 4%.

you want to hedge your option position against changes in the stock price. How many shares of stock will you hold for each option contract purchased or sold?

Please explain the formulas!

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