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Business, 03.05.2021 17:20 Esme1995

Suppose that call options on ExxonMobil stock with time to expiration 3 months and strike price $90 are selling at an implied volatility of 30%. ExxonMobil stock currently is $90 per share, and the risk-free rate is 4%. 1) If you believe the true volatility of the stock is 32%, how can you trade on your belief without taking on exposure to the performance of ExxonMobil

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Suppose that call options on ExxonMobil stock with time to expiration 3 months and strike price $90...
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