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Please do not use Excel Formulas. A stock price is currently $50. It is known that at the end of two months it will be

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Please do not use Excel Formulas.

A stock price is currently $50. It is known that at the end of two months it will be either $53 or $48. The risk-free interest rate is 10% per annum with continuous compounding. Use no arbitrage arguments. a) What is the value of a two-month European put option with a strike price of $50? b) How would you hedge a short position in the option

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