If the hedge ratio for a stock call is 0.70, the hedge ratio for a put with the same expiration date and exercise price as the call would be
A)0.70.
B)0.30.
C)-0.70.
D)-0.30.

Question

Quizplus · Accepted Answer

The hedge ratio for a put option is the negative of the hedge ratio for a call option with the same expiration date and exercise price. Therefore, if the call's hedge ratio is 0.70, the put's hedge ratio would be -0.30.

If the Hedge Ratio for a Stock Call Is 0