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A bank's current share price is $60, and it will be worth either $70 or 40 in three months. The risk-free rate of interest is

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A bank's current share price is $60, and it will be worth either $70 or 40 in three months. The risk-free rate of interest is 5% (continuously compounded). What is the value of call option with an exercise of $60? Find the hedge ratio for this share and explain its meaning

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