All else being equal, how does the hedge ratio of a call option with a high exercise price compare to the hedge ratio of an option with a low exercise price on the same underlying a The two options have identical hedge ratios because the underlying is the same b Option with a high exercise price has a lower hedge ratio than one with a low exercise price c Exercise price has no effect on the hedge ratio, so the two options have identical hedge ratios d Option with a high exercise price has a higher hedge ratio than one with a low exercise price

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Question: All else being equal, how does the hedge ratio of a call option with a high exercise price compare to the hedge ratio of an

All else being equal, how does the hedge ratio of a call option with a high exercise price compare to the hedge ratio of an option with a low exercise price on the same underlying?

The two options have identical hedge ratios because the underlying is the same

Option with a high exercise price has a lower hedge ratio than one with a low exercise price

Exercise price has no effect on the hedge ratio, so the two options have identical hedge ratios

Option with a high exercise price has a higher hedge ratio than one with a low exercise price

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