Exercise 16.3.1 (1) A delta hedge under the BOPM results in perfect replication (see Chap. 9). However,
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Exercise 16.3.1 (1) A delta hedge under the BOPM results in perfect replication
(see Chap. 9). However, this is impossible in the current context. Why? (2) How should the value of the derivative behave with respect to that of the underlying asset for perfect replication to be possible?
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