Question: Why does hedging a short call option involve a buy high, sell low strategy? Hint: How do you hedge a short call position? What happens

Why does hedging a short call option involve a "buy high, sell low" strategy?
Hint: How do you hedge a short call position? What happens to the amount of hedging instrument that you would need as the price of underlying increases or decreases


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Hedging a short call option might appear to be a buy high sell low strategy on the surface but its a misconception when considering the overall portfo... View full answer

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