To show how to calculate the hedge ratio, we use notation that includes the following: ________.
A) S = current asset price and C = current price of a call option.
B) Cd = intrinsic value of the call option if the asset price goes up and E = strike price of the call option.
C) d = current price of a call option and r = a risk-free one-period interest rate .
D) E = strike price of the call option and u = current asset price.
Correct Answer:
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