Hedge ratios for long puts are always ________.
A) between −1 and 0
B) between 0 and 1
C) 1
D) greater than 1

Name: Hedge ratios for long puts are always ________. A) between −1 and 0 B) between 0 and 1 C) 1 D) greater than 1
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Question

Quizplus · Accepted Answer

Hedge ratios for long puts are always between −1 and 0 because a long put position gains value as the underlying asset's price decreases, indicating a negative correlation between the position value and the asset price movement.

Hedge Ratios for Long Puts Are Always ________