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Business, 26.11.2020 06:00 j015

Data. So-102:X= 116, 1 + r= 1.08. The two possibilities for ST are 150 and 82. a. The range of S is 68 while that of P is 34 across the two states. What is the hedge ratio of the put?b. Form a portfolio of one shares of stock and two puts. What is the (nonrandom) payoff to this portfolio?

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Data. So-102:X= 116, 1 + r= 1.08. The two possibilities for ST are 150 and 82. a. The range of S is...
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