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1. Suppose A()=10, A(T)=11, and S(O)=9, and . The price of a European call option with exercise time T and strike price equals to 8

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1. Suppose A()=10, A(T)=11, and S(O)=9, and . The price of a European call option with exercise time T and strike price equals to 8 is C(O)=2.109. Compute the risk as measured by the standard deviation of the cost of buying one share with and without one option at time T if p=0.3

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