The current price of a non-dividend-paying stock is $50. Over the next six months, it is expected to rise to $55 or fall to $45. Assume the risk-free rate is 5% with continuous compounding. An investor sells a call option at a strike price of $51. What is the hedge portfolio? Olong 0.6 Share short 1 call O Short 0.4 Shares and long 1 call O long 0.4 Shares and short 1 call O long 0.4 shares and long a call

The current price of a nondividend-paying stock is $50. Over the next six months, it is expected to rise to $55 or fall to $45. Assume the risk-free rate is 5% wth continuous comporinding Minvestor sell a call option at a strikn price of 551 . What is the hedge portfolio? bing 0.6 shave short 1 call Short 0.4 Shares and long 1 call long 0.4 Shaver and shot 1 call long 0.4 shares and long a cal