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Consider three types of investors, a hedger, a speculator and arbitrageur, who are following Black & Scholes model to compute option price on the stock
Consider three types of investors, a hedger, a speculator and arbitrageur, who are following Black & Scholes model to compute option price on the stock of Excel, a hypothetical company. Who will consider inclusion of arbitrage profit in computation of option price? Why or why not? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U Paragraph Arial 14px | TY AQ .. o === E X X & T Te +] ABC V 1 " 2 e. X - EXE E 0) P O WORDS POWERED BY TINY A Moving to another question will save this response. Question 21 of 29
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