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Posted on Aug 09, 2024

The stock price of Aurora Corporation is currently $ 5 0 . The stock price three months from now will be either $ 5 3

The stock price of Aurora Corporation is currently $

50 .

The stock price three months from now will be either

53

or $

48 .

The three

-

month risk

-

free rate is

1.68 % .

An investor sells one

-

year call options with a strike price

of $

49 .

Which of the following positions will perfectly hedge the call options?

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