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A single branch on a Binomial tree is represented by the following diagram. Calculate how many shares of the underlying asset (delta) are required

A single branch on a Binomial tree is represented by the following diagram. Calculate how many shares of the underlying asset (delta) are required to delta hedge. Enter your answer to two decimal places. S = $20 Answer: ST = $25 P = $0 Time 0 Time 1 ST = $16 Pa = $4

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