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This example is part of Hedged Portfolios to minimize risk. Assume you have $9000 to invest; A stock is trading at $90.00. A call option
This example is part of "Hedged Portfolios" to minimize risk. Assume you have $9000 to invest; A stock is trading at $90.00. A call option that expires in one year with a strike price of $90.00 is trading at $10.00.
What is your portfolio's 1-year return if you invest in "Only Stocks" and the the stock price after one year is $48.00? Enter your answer in the following format: + or - 0.1234 Hint: Answer is between -0.4212 and -0.5042
___________?
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