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Exercise 1 For the following values, S = 100 K=100 Rp = 3% T = 1 Year o = 20% No dividends Calculate the value

Exercise 1 For the following values, S = 100 K=100 Rp = 3% T = 1 Year o = 20% No dividends Calculate the value of a call option with a dynamic hedging strategy using weekly steps? Calculate 10 trials and show the average value as compared to the Black-Scholes value? Exercise 1 For the following values, S = 100 K=100 Rp = 3% T = 1 Year o = 20% No dividends Calculate the value of a call option with a dynamic hedging strategy using weekly steps? Calculate 10 trials and show the average value as compared to the Black-Scholes value

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