Consider again the bet in Example 21.3. Suppose the bet is S - $106.184 if the price

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Consider again the bet in Example 21.3. Suppose the bet is S - $106.184 if the price is above $106.184, and $106.184S if the price is below $106.184. What is the value of this bet to each party? Why?

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Derivatives Markets

ISBN: 978-0321280305

2nd Edition

Authors: Robert L. McDonald

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