# hedging with known volatility

Suppose we have a stock $X$ at which trades at 100 dollars. We suppose the stock follows a geometric brownian motion. We know that the interest rate is zero and annual volatility is 10 percent. How can we hedge the risk?

• Delta hedging of a vanilla European option on X? – pincopallino Apr 9 '14 at 7:37
• It is not really clear what you are trying to hedge - an option? If yes- which one ? – Probilitator Apr 9 '14 at 9:17
You sell your stock $S$ against some cash.