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Hedged portfolio

• A portfolio consisting of the long position in the stock and the short position in the call option, so as to be risk less and produce a return that equals the risk-free interest rate.

 
 

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 Embedded terms in definition
 Call option
Call
Interest rate
Interest
Long position
Long
Option
Portfolio
Position
Return
Risk
Short position
Short
Stock
 
 Related Terms
 

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