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Question
You have an equity portfolio valued at $1.55 million that has a beta of 1.21. You have decided to hedge this portfolio using SPX call option contracts. The S&P 500 index is currently 1457. The option delta is .6435. How many option contracts must you write to effectively hedge your portfolio?A. 14 contracts
B. 18 contracts
C. 20 contracts
D. 25 contracts
E. 28 contracts
Answer
This answer is hidden. It contains 2 characters.
Related questions
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