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B) Given that the current stock price equals 60,E=50,u=.15,d=.20 and the risk free rate equals 10%. Calculate the hedge ratio and calculate the call price.

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B) Given that the current stock price equals 60,E=50,u=.15,d=.20 and the risk free rate equals 10%. Calculate the hedge ratio and calculate the call price. Detail the extra normal returns to risk neutral portfolio holders if C were momentarily priced at $15.50 and, altematively, at $14

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