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Suppose you have taken a short position on a call option. The strike price of the option is 120 NGN (Nigerian Naira). At the time

Suppose you have taken a short position on a call option. The strike price of the option is 120 NGN (Nigerian Naira). At the time you took the position, the price of the underlying asset was 119 NGN. The option is written on 1000 units of the underlying asset.

What is the theoretical (optimal) total cost of the stop-loss hedging strategy (for options)?

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