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9. (20 points) Suppose you own 100 shares of stock and you want to protect yourself using the method of portfolio insurance. Suppose that the

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9. (20 points) Suppose you own 100 shares of stock and you want to protect yourself using the method of portfolio insurance. Suppose that the stock is currently worth $ 250 per share and your insurance will replace buying a 3 month European put at a strike price of $ 235. Suppose r = 5% and the volatility is 15% per annum. What should you do

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