What is an option hedge ratio

Reference no: EM133264736

Question 1: What is an option hedge ratio? How does the hedge ratio for a call differ from that of a put (or are the two equivalent)? Explain.

Question 2: Discuss the differences between the capital market line and the security market line.

Question 3: Discuss the similarities and the differences between the CAPM and the APT with regard to the following factors: capital market equilibrium, assumptions about risk aversion, risk-return dominance, and the number of investors required to restore equilibrium.

Reference no: EM133264736

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