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3.(10pt) Suppose the stock price is 50, the risk-free rate is 2% continuously compounded. What is the price of a 1 year call struck at

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3.(10pt) Suppose the stock price is 50, the risk-free rate is 2% continuously compounded. What is the price of a 1 year call struck at 50 if the volatility is 0. How would you hedge the call. Check your answer with the option calculator making volatility smaller and smaller. 3.(10pt) Suppose the stock price is 50, the risk-free rate is 2% continuously compounded. What is the price of a 1 year call struck at 50 if the volatility is 0. How would you hedge the call. Check your answer with the option calculator making volatility smaller and smaller

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