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Copper is trading at $8 per KG. Our model assumes in one year, copper will trading at either $14 or $4. USD Interest rates are

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Copper is trading at $8 per KG. Our model assumes in one year, copper will trading at either $14 or $4. USD Interest rates are 25%. For a European call option with strike at $10 per KG, derive a replicating portfolio H consisting of Copper and the riskless asset B. Now using sure-thing arbitrage, calculate the premium for the option

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