The ______ is the number of options required to offset one unit of the underlying asset.

Question

Quizplus · Accepted Answer

The hedge ratio is the number of options required to offset one unit of the underlying asset. It is important to calculate the hedge ratio to effectively hedge against market risk. Implied volatility is a measure of the market's expectation of the stock's volatility in the future, while option volatility refers to the volatility of the underlying asset's price. Stationary series is a statistical term used to describe a set of data that does not exhibit trends or cycles.

The ______ Is the Number of Options Required to Offset