If the hedge ratio for a stock call is 0.60, the hedge ratio for a put with the same expiration date and exercise price as the call would be
A. 0.60.
B. 0.40.
C. ?0.60.
D. ?0.40.
E. ?0.17.
D. ?0.40.
Call hedge ratio = N(d1); Put hedge ratio = N(d1) ? 1; 0.6 ? 1.0 = ?0.4.
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