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Part A i. When valuing European Vanilla Options in the Black-Scholes-Merton Model, there is one source of uncertainty. What is this uncertainty? (3 marks) Max
Part A
i. When valuing European Vanilla Options in the Black-Scholes-Merton Model, there is one source of uncertainty. What is this uncertainty? (3 marks) Max 50 words.
ii. Why does a short call position in a European vanilla option typically have negative delta ()? (2 mark) Max 75 words Please explain in details
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