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The current price of a non-dividend-paying stock is $38. Over the next six months it is expected to rise or fall by 10%.
Posted: Tue Jan 18, 2022 12:57 pm
by answerhappygod
- The Current Price Of A Non Dividend Paying Stock Is 38 Over The Next Six Months It Is Expected To Rise Or Fall By 10 1 (67.51 KiB) Viewed 21 times
The current price of a non-dividend-paying stock is $38. Over the next six months it is expected to rise or fall by 10%. Assume the risk-free rate is zero. An investor sells six-month call options with a strike price of $32. Which of the following hedges the position? Short 0.3 shares for each call option sold long 0.3 shares for each call option sold O long 0.4 shares for each call option sold Short 0.4 shares for each call option sold