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This exercise is patterned on Exercises 1 and 2. You are given the following data: (a) Calculate the fair market price of the put or
This exercise is patterned on Exercises 1 and 2. You are given the following data: (a) Calculate the fair market price of the put or call. (b) Find the number of shares of stock to buy or sell to hedge the position. (c) Assume you sell the put or call for the fair market price +$0.10. Find your profit, independent of stock performance. This exercise is patterned on Exercises 1 and 2. You are given the following data: (a) Calculate the fair market price of the put or call. (b) Find the number of shares of stock to buy or sell to hedge the position. (c) Assume you sell the put or call for the fair market price +$0.10. Find your profit, independent of stock performance
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