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Q 3 . Calculate: Call Premium ( 2 Period Bi - nominal ) . Put Premium ( 2 Period Bi - nominal ) . Hedge
Q Calculate:
Call Premium Period Binominal
Put Premium Period Binominal
Hedge ratio,
Calculate profit in one period of a portfolio which has Delta number of share and one put
option. Hint: assume buy or sell share in friction
S stock price
X strike price spot pricea
Up factor
Down Factor
Rate of interest
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