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Question 3 1 pts Which of the following are NOT true Risk-neutral valuation and no- arbitrage arguments give the same option prices. Risk-neutral valuation involves
Question 3 1 pts Which of the following are NOT true Risk-neutral valuation and no- arbitrage arguments give the same option prices. Risk-neutral valuation involves assuming that the expected return is the risk-free rate and then discounting expected payoffs at the risk-free rate. A hedge set up to value an option does not need to be changed. All of the above
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