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Suppose we have a portfolio with a value of $2M. It has a Beta of 1.2. We can get an S&P 500 index option with

Suppose we have a portfolio with a value of $2M. It has a Beta of 1.2.

We can get an S&P 500 index option with a strike price of 3094 and a Delta of -.4123.

What is our Hedge ratio?

	A.	1.88
	B.	18.8
	C.	188.1
	D.	5.7

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