A stock price is currently $20. It is known that at the end of one month that the stock price will either increase to 25 or decrease to 18. The risk-free interest rate is 12% per annum with continuous compounding. The hedge portfolio is a long position in A shares of stock plus one short Euorpean call option with strike price of $19 and expiration in 1 month. Using the no-arbitrage method, what is the present value of this hedge portfolio at time 0? You Answered Correct Answer 15.28 margin of error +/- 0.01