The interest rate is 2% per year. The stock price of ILW is currently $88 and it pays no dividends, The stock price a year from now will either be $100 or $68. You sell your client a call option on ILW with a strike price of S92 and an expiration date 1 year from now. 

What is the hedge ratio of this call option?

Answer rating: 100% (QA)

To determine the hedge ratio of a call option we need to calculate the ratio of the change in the ... View the full answer