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1. Calculate the cost of hedging a short $1 billion put with strike K when the underlying oscillates from K -3% and K +3% for

1. Calculate the cost of hedging a short $1 billion put with strike K when the underlying oscillates from K -3% and K +3% for the last 10 days of the option's life.

2.How much volatility has been realized in the last 10 days in annualized terms?

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