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Business, 03.07.2020 04:01 Zshotgun33

Malmentier SA stock is currently priced at $85, and it does not pay dividends. The instantaneous risk-free rate of return is 5%. The instantaneous standard deviation of Malmentier SA stock is 25%. You want to purchase a put option on this stock with an exercise price of $90 and an expiration date 30 days from now. According to the Black-Scholes OPM, you should hold shares of stock per 100 put options to hedge your risk.

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Malmentier SA stock is currently priced at $85, and it does not pay dividends. The instantaneous ris...
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