Toronto Skaters' stock is now worth $100.In one month, it will either be $80 or $120.Given that the monthly risk-free rate is 2%, how many calls does the investor need to sell to hedge a long position in Toronto Skaters' stock? (Assume a strike price of $105)

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The Answer of Toronto Skaters' stock is now worth $100.In one month, it will either be $80 or $120.Given that the monthly risk-free rate is 2%, how many calls does the investor need to sell to hedge a long position in Toronto Skaters' stock? (Assume a strike price of $105)

Toronto Skaters' Stock Is Now Worth $100