Question
a. If, in a two-state model, a stock can take a price of 164 or 123, what would be the hedge ratio for each of
a. If, in a two-state model, a stock can take a price of 164 or 123, what would be the hedge ratio for each of the following prices: $164, $155, $145, $123? (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.)
| X | Hedge Ratio | |
| $ | 164 | |
| $ | 155 | |
| $ | 145 | |
| $ | 123 | |
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Principles Of Finance With Excel
Authors: Simon Benninga
1st Edition
0195301501, 978-0195301502
