If while valuing a put option using a binomial tree you find a hedge ratio=3/5 is necessary, what does this mean should

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899604
Joined: Mon Aug 02, 2021 8:13 am

If while valuing a put option using a binomial tree you find a hedge ratio=3/5 is necessary, what does this mean should

Post by answerhappygod »

If while valuing a put option using a binomial tree you find a
hedge ratio=3/5 is necessary, what does this mean should be in our
portfolio to have a riskless gain in either state of the
world?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply