a. In the hedging example in the text, suppose that your equity portfolio had a beta of
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a. In the hedging example in the text, suppose that your equity portfolio had a beta of 1.50 instead of 1.00. What number of SPX call options would be required to form an effective hedge?
b. Alternatively, suppose that your equity portfolio had a beta of .50. What number of SPX call options would then be required to form an effective hedge?
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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