3. Consider a European call option on a nondividend-paying stock, where the risk free rate r = 0.02, that has exercise date T > 0. Let St be the price of one share of the stock at time t, where 0 0 and we also know that the initial cost of this call option is V(S0,0) 5, and the initial cost A. So of shares to delta-hedge one unit of the call option is 10. Calculate 4v ($0,0). (40 points) Answer: 3. Consider a European call option on a nondividend-paying stock, where the risk free rate r = 0.02, that has exercise date T > 0. Let St be the price of one share of the stock at time t, where 0 0 and we also know that the initial cost of this call option is V(S0,0) 5, and the initial cost A. So of shares to delta-hedge one unit of the call option is 10. Calculate 4v ($0,0). (40 points)