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Which statement is correct? You can either write call option or put option to hedge your portfolio. Since the put and call options have different
Which statement is correct? You can either write call option or put option to hedge your portfolio. Since the put and call options have different deltas, you need to use different number of call or put options to protect your position. The portfolio's size has no impact on the number of options you need to have to hedge your position. As the portfolio's beta increases, you need to write less number of call options to protect your portfolio
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