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5b) Suppose you have the following information: p = 0:95, 0 = 5,05 = 24, 0 = 26, K = 90, R = 1.00018. What

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5b) Suppose you have the following information: p = 0:95, 0 = 5,05 = 24, 0 = 26, K = 90, R = 1.00018. What is the minimum-variance tailed hedge? (10 marks)

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