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After you find the value of your option, you discuss it with a friend. She says she will use the information you gave her to
After you find the value of your option, you discuss it with a friend. She says she will use the information you gave her to replicate the option payoffs. This is called a replicating portfolio. Based on your understanding of replicating portfolios, is the following statement true or false? The cost of the replicating portfolio will be equal to the value of the call option or else arbitrage will drive the prices to be equal. True False
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