# 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? Apr 9, 2014 at 7:37
• It is not really clear what you are trying to hedge - an option? If yes- which one ? Apr 9, 2014 at 9:17
• Please tell us what your are asking. Apr 14, 2014 at 8:11
• There may be an option somewhere.... Jul 9, 2014 at 22:55

You sell your stock $S$ against some cash.