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You Have Determined That You Need −1,793 Call Options to Hedge

Question 41

Multiple Choice

You have determined that you need −1,793 call options to hedge your stock portfolio. What should you do based on this information?


A) buy 17 call option contracts
B) buy 1,793 call option contracts
C) write 17 call option contracts
D) write 18 call option contracts
E) write 1,793 call option contracts

Correct Answer:

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