Question: Explain how a stop-loss trading rule can be implemented for the writer of an out-of-the-money call option. Why does it provide a relatively poor hedge?

Explain how a stop-loss trading rule can be implemented for the writer of an out-of-the-money call option. Why does it provide a relatively poor hedge?

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Suppose the strike price is 1000 The option writer aims to be fully covered whenever the option is i... View full answer

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