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Business, 12.12.2019 01:31 loudermilkb117

We will derive a two-state call option value in this problem. data: s0 = 210; x = 220; 1 + r = 1.1. the two possibilities for st are 250 and 130. a. the range of s is 120 while that of c is 30 across the two states. what is the hedge ratio of the call? (round your answer to 2 decimal places.)

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We will derive a two-state call option value in this problem. data: s0 = 210; x = 220; 1 + r = 1....
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