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Over the coming year, Ragwort's stock price will halve to $70 from its current level of $140 or it will rise to $280. The one-year

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Over the coming year, Ragwort's stock price will halve to $70 from its current level of $140 or it will rise to $280. The one-year Interest rate is 8%. a. What Is the delta of a one-year call option on Ragwort stock with an exercise price of $140 ? (Round your answer to 4 decimal places.) b. Given the delta computed In part (a), how much would be borrowed if the replicating-portfollo method was used to value the call option? (Do not round Intermedlate calculations. Round your answer to 2 declmal places.) c. In a rlsk-neutral world, what Is the probability that Ragwort stock will rise In price? (Round your answer to 2 decimal places.) d. Using the risk-neutral method, what is the value of the call option? (Do not round Intermedlate calculations. Round your answer to 2 decimal places.) e. If someone told you that In reality there is a 60% chance that Ragwort's stock price will rise to $280, would you change your view about the value of the optlon

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