A hedge ratio for a put is always
A)equal to one.
B)greater than one.
C)between zero and one.
D)between negative one and zero.

Question

Quizplus · Accepted Answer

The hedge ratio for a put option (also known as the option's delta) measures the rate of change of the option price with respect to the price of the underlying asset. For a put option, the delta is always between -1 and 0 because the value of the put option increases as the price of the underlying asset decreases, indicating a negative relationship.

A Hedge Ratio for a Put Is Always