Chapter 05 · Section 5.1
Exercise
If the stock increases above the exercise price of the call, the hedger will exercise the call, buying the stock at the exercise price and limiting the losses to the premium paid for the call.
Chapter 05 · Section 5.1
If the stock increases above the exercise price of the call, the hedger will exercise the call, buying the stock at the exercise price and limiting the losses to the premium paid for the call.