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Let S, c, and p be a stock; a stock, a European call on the stock, and a European put on the stock. The prices
Let S, c, and p be a stock; a stock, a European call on the stock, and a European put on the stock. The prices of each are 42. 4.15, and 1.70, respectively. Two investors, A and B, invest in portfolios containing quantities of the call and the put on the stock. Investor A purchases 2 calls and 1 put. The elasticity of A's portfolio is 3.36. Investor D purchases 4 calls and writes 6 puts. Delta_B = 4.8. What is the elasticity of the call? What is the dividend rate of S
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