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Over the coming year Ragworts stock price will halve to $50 from its current level of $100 or it will rise to $200. The one-year
Over the coming year Ragworts stock price will halve to $50 from its current level of $100 or it will rise to $200. The one-year interest rate is 10%. A) What is the delta of the one year call option on Ragworts stock with an exercise price of $100. B) Using the replicating portfolio method, value this call.
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