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Investing.com traders want to have optimal trading strategy. They hire you to develop it. You are provided by investing.com with this information concerning the stock
Investing.com traders want to have optimal trading strategy. They hire you to develop it. You are provided by investing.com with this information concerning the stock denoted by St. Current Value — $108, Annual Volatility = 32%. In this scenario the market spot rate is 5% for next three months. Furthermore investing.com consider that dynamic of this stock is compatible with binomial process with assumption of I month.
Suppose under OTC market you sell 100 call options then how your position will be hedged? Be precise
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An Introduction to the Mathematics of Financial Derivatives
Authors: Ali Hirsa, Salih N. Neftci
3rd edition
012384682X, 978-0123846822
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