Financial Options and Weighted Average Cost of Capital (WACC)” Please respond to
the following:
Determine two to three (2-3) methods of using stocks and options to create a
risk-free hedge portfolio. Support your answer with examples of these methods
being used to create a risk-free hedge portfolio.
* From the scenario, create a unique hypothetical weighted average cost of
capital (WACC) and rate of return. Recommend whether or not the company should
expand, and defend your position.