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Q. Assume a call option's strike price is initially equal to the price of its underlying asset. Based on the binomial model, if the volatility

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Q. Assume a call option's strike price is initially equal to the price of its underlying asset. Based on the binomial model, if the volatility of the underlying decreases, the lower of the two potential payoff values of the hedge portfolio: 1. decreases. 2. remains the same. 3. increases

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