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Problem # 2 VVS stock is now trading at $ 33 and does not pay dividends. A European put expiring one year on VVS and

Problem # 2

VVS stock is now trading at $ 33 and does not pay dividends. A European put expiring one year on VVS and exercise price $ 35 is currently worth $ 2.10. The annual risk-free interest rate is by 10%. What is the price of a European call with identical characteristics?

Problem # 3

Express the position of a shareholder using puts

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