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Calculate the number of call options

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You hold 1000 BHP shares with a beta of 0.91. You anticipate a decline in equity values and wish to hedge using BHP call options with a delta of 0.8. BHP shares are currently $50.00, and the call options are $0.52. Calculate the number of call options you would need to hedge your position and indicate whether you need to go long or short.

Reference no: EM132594396

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