Question
a. If, in a two-state model, a stock can take a price of 196 or 147, what would be the hedge ratio for each of
a. If, in a two-state model, a stock can take a price of 196 or 147, what would be the hedge ratio for each of the following prices: $196, $195, $185, $147? (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.)
| X | Hedge Ratio | |
| $ | 196 | |
| $ | 195 | |
| $ | 185 | |
| $ | 147 | |
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Essentials Of Corporate Financial Management
Authors: Glen Arnold
1st Edition
1405847042, 978-1405847049
