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please show steps and formula. thanks. 10 6 Q F R F G H K Enter C V B Shift Alt Alt cate A) LIBOR

please show steps and formula. thanks. image text in transcribed
10 6 Q F R F G H K Enter C V B Shift Alt Alt cate A) LIBOR B) 17%CLIBOR+ 1% D) LIBOR-1% 18) The current stock price of Alcoco is $70, and the stock does not pay dividends. The instantaneous risk-free rate of return is 6%. The instantaneous standard deviation of Alcoco's stock is 40%. You want to purchase a put option on this stock with an exercise price of $75 and an expiration date 30 days from now. According to the Black-Scholes OPM, you should hold re t cate shares of stock per 100 put options to hedge your risk. 18) A) 30 B) 34 C) 69 D) 74 19) Which of the following would not be considered a supply shock? in the price of imported oil 19)

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