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A stock is currently priced at $45. It will either increase by 20% or decrease by 10% over the next two months. If you sold
A stock is currently priced at $45. It will either increase by 20% or decrease by 10% over the next two months. If you sold a put option with exercise price of $45 and two months to maturity, how many shares of stock should you buy or sell to hedge the option?
Doesn't give risk free rate.
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