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Business, 14.12.2019 01:31 ashley968

Consider a call option. if, in a two-state model, a stock can take a price of $136 or $102, what would be the hedge ratio for each of the following exercise prices: $136, $130, $120, $102? (leave no cells blank - be certain to enter "0" wherever required. round your answers to 2 decimal places.) x hedge ratio $ 136 $ 130 $ 120 $ 102
b. what do you conclude about the hedge ratio as the option becomes progressively more in the money? increases to a maximum of 1.0 decreases to a minimum of 0 rev: 01_15_2019_qc_cs-153507, 03_09_2019_qc_cs-162326

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Consider a call option. if, in a two-state model, a stock can take a price of $136 or $102, what wou...
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