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c. Consider the following scenario: The price of a stock is $100 and in one month its price can go up to $120, stay at

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c. Consider the following scenario: The price of a stock is $100 and in one month its price can go up to $120, stay at $100 or go down to $90. A European call has exercise price $105 and price e = $5 and another European call has exercise price $95 and price c = $10. How many stocks and how many calls you need to buy or sell) so that the payoff in one month will be $1 regardless of the price of the stock? Note: You must use all three securities. c. Consider the following scenario: The price of a stock is $100 and in one month its price can go up to $120, stay at $100 or go down to $90. A European call has exercise price $105 and price e = $5 and another European call has exercise price $95 and price c = $10. How many stocks and how many calls you need to buy or sell) so that the payoff in one month will be $1 regardless of the price of the stock? Note: You must use all three securities

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