True, when call options are bought, it is not known with certainty what the precise cost of hedging with them will be (as expressed in the text).
A approach for reducing the risks associated with financial assets is hedging. It uses market tactics or financial instruments to reduce the risk of any unfavorable price changes. To put it another way, investors use a trade in another investment to protect one investment. You can protect yourself against fires, break-ins, and other unforeseeable tragedies by purchasing homeowner's insurance, for instance. Hedging strategies are used by portfolio managers, individual investors, and businesses to lessen their exposure to certain risks. Hedging is a sophisticated risk management tactic that entails purchasing or disposing of a security to potentially help lower the risk of a position's potential loss.
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