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The current price of a non-dividend-paying stock is $237.72 and you expect the stock price to be either $261.49 or $216.11 after 0.5 years. A
The current price of a non-dividend-paying stock is $237.72 and you expect the stock price to be either $261.49 or $216.11 after 0.5 years. A European call option on the stock has a strike price of $240 and expires in 0.5 years. The risk-free rate is 8% (EAR). - Attempt 1/2 for 10 pts. Part 1 What is the hedge ratio (delta)? .4735 Correct Part 2 | Attempt 1/2 for 10 pts. How much money do you need to invest in riskless bonds to create a portfolio that replicates the payoff from one call option? Enter any amount borrowed as a negative number. 0+ decimals Submit Attempt 1/2 for 10 pts. Part 3 What should be the price (premium) of the call option
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