In the binomial option valuation model, a call has a hedge ratio of 0.8, and a put has a hedge ratio of -0.0999999999999

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answerhappygod
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In the binomial option valuation model, a call has a hedge ratio of 0.8, and a put has a hedge ratio of -0.0999999999999

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In The Binomial Option Valuation Model A Call Has A Hedge Ratio Of 0 8 And A Put Has A Hedge Ratio Of 0 0999999999999 1
In The Binomial Option Valuation Model A Call Has A Hedge Ratio Of 0 8 And A Put Has A Hedge Ratio Of 0 0999999999999 1 (34.3 KiB) Viewed 69 times
In the binomial option valuation model, a call has a hedge ratio of 0.8, and a put has a hedge ratio of -0.09999999999999999. You want to form a riskfree portfolio using the call and the put. Assume the portfolio has one call. Then it should contain puts (keep 2 decimal places).
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