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determine the value and initial hedge of a derivative security that pays at time 1, V1() = S1()^2, using these values Initial Stock Value S0

determine the value and initial hedge of a derivative security that pays at time 1, V1() = S1()^2, using these values

Initial Stock Value S0 = 10

Interest Rate r = 0.05

Up factor u = 3

Down factor d = 0.5

Strike Rate = 9

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