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A stock price is currently $60. Over each of the next two six-month periods, it is expected to go up by 6% or down by

A stock price is currently $60. Over each of the next two six-month periods, it is expected to go up by 6% or down by 6%. The risk-free interest rate is 5% per year with semi-annual compounding.

Assume six months have passed, discuss how you can hedge risk when you realize that the stock price is $63.6?

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