Question
Consider a riskless spread with a long position in the August 160 call and a short position in the October 160 call. Determine the appropriate
Consider a riskless spread with a long position in the August 160 call and a short position in the October 160 call. Determine the appropriate hedge ratio. Then show how a $1 stock price increase would have a neutral effect on the spread value. Discuss any limitations of this procedure. Please use information from this picture, and i need process.
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Numerical Techniques In Finance
Authors: Simon Benninga
1st Edition
0262022869, 978-0262022866
