In schweser notes book 5, there are two definitions for hedge ratio. On page 239 bottom, it is H=(C+ - C-)/(S+ - S-) On page 259 bottom, it is hedge ratio=1/delta the 1st definition is the reciprocal of the 2nd definition. Which one is correct? Thanks
first, H = delta second, for each option you should buy/sell delta underlying contracts your second formula is for number of options to buy/sell per 1 underlying contract