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i. When valuing European Vanilla Options in the Black-Scholes-Merton Model, there is one source of uncertainty. What is this uncertainty? (3 marks) ii. Why does
i. When valuing European Vanilla Options in the Black-Scholes-Merton Model, there is one source of uncertainty. What is this uncertainty? (3 marks)
ii. Why does a short call position in a European vanilla option typically have negative delta ()? (2 mark)
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