Business, 30.12.2021 04:40 rudybelizaire

A stock price is currently $50. It is known that at the end of six months it will be either $45 or $55. The risk-free interest rate is 10% per annum with continuous compounding. For a six-month European put option with a strike price of $50, what position in the stock is necessary to hedge a short position in the option

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A stock price is currently $50. It is known that at the end of six months it will be either $45 or $...

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