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a. If, in a two-state model, a stock can take a price of 200 or 150, what would be the hedge ratio for each of
a. If, in a two-state model, a stock can take a price of 200 or 150, what would be the hedge ratio for each of the following prices: $200, $180, $160, $150? (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.)
X | Hedge Ratio | |
$ | 200 | |
$ | 180 | |
$ | 160 | |
$ | 150 | |
|
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