Question
IBM stock currently sells for 84 dollars per share. The implied vitalityequals 47.5 percent. The risk free rate of interest Is 45 percent continuously compounded.
IBM stock currently sells for 84 dollars per share. The implied vitalityequals 47.5 percent. The risk free rate of interest Is 45 percent continuously compounded. If you shorted 100 shares of IBM stock with strike price 83 and maturity of 8 months, how many call options would you have to buy (sell) or create delta-neutral hedges?
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Matlab An Introduction with Applications
Authors: Amos Gilat
5th edition
1118629868, 978-1118801802, 1118801806, 978-1118629864
