If the hedge ratio for a stock call is 0.70, then what would be the hedge ratio for a put with the same expiration date and exercise price as the call?
The hedge ratio is the amount of underlying assets that need to be bought or sold in order to hedge the changes due to the change in delta of the option. Usually for calls, hedge ratio is positive and for puts, it is negative.
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fromChapter 1 / Lesson 4
In this lesson, you will explore the various types of risks faced by a business and understand how financial risk is different from other types of risks. Then, you will learn about the different types of financial risks and methods to manage them.