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Save Answer Question 7 6 points Stock Z is currently selling for $50. You believe that, one year from now, Stock Z will sell for

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Save Answer Question 7 6 points Stock Z is currently selling for $50. You believe that, one year from now, Stock Z will sell for either $75 (up-state) or $45 (dow n-state). The yield on a 1-year risk-free zero coupon bond is currently 5%. You have a European call option with a 1-year expiration date and an exercise price of $50. You would like to create a strategy that replicates the call option payoff at the expiration date. a) Construct a strategy that replicates the call option payoff. (Indicate how many shares you would need to buy (A) and how much you would need to borrow today. b) What would be this option value today

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