Question: . Calculate the position needed to hedged using the information below. - Non-Dividend paying stock with a price of $47 - Risk free rate -

. Calculate the position needed to hedged using the information below.

- Non-Dividend paying stock with a price of $47

- Risk free rate - 0%

- Price expectation is to increase to $55 or decrease to $35 over next six months

- Selling a 6 month call that has a strike of $45

Question 11 options:

Short 0.4 shares for each call option sold

Short 0.5 shares for each call option sold

Buy 0.5 shares for each call option sold

Buy 0.4 shares for each call option sold

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