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Question
Laura has an equity portfolio valued at $11.2 million that has a beta of 1.32. She has decided to hedge this portfolio using SPX call option contracts. The S&P 500 index is currently 1402. The option delta is .582. How many option contracts must Laura write to effectively hedge her portfolio?A. 37 contracts
B. 42 contracts
C. 175 contracts
D. 181 contracts
E. 191 contracts
Answer
This answer is hidden. It contains 2 characters.
Related questions
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