The stock price can next period be either 100 or 200 . The stock price today is
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The stock price can next period be either 100 or 200 . The stock price today is 150 . You have a put option that expires next period. The exercise price of the put option is \(100 \mathrm{o}\). The price of a discount bond that matures next period is 0.8 . You would like to eliminate the risk of holding the put option. What position do you need to take in the stock?
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Related Book For 
Lectures On Corporate Finance
ISBN: 9789812568991
2nd Edition
Authors: Peter L Bossaerts, Bernt Arne Odegaard
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