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YBM's stock price S is $102 today. - After six months, the stock price can either go up to $115.63212672, or go down to $93.52995844.
YBM's stock price S is $102 today. - After six months, the stock price can either go up to $115.63212672, or go down to $93.52995844. - Options mature after T=6 months and have an exercise price of K=$105. - The continuously compounded risk-free interest rate r is 5 percent per year. Given the above data, the hedge ratio and the put option's value are given by: 1. 0.2523 for the hedge ratio and $2.35 for the put option's value 2. 0.2523 for the hedge ratio and $4.81 for the put option's value 3. 0.5190 for the hedge ratio and $5.59 for the put option's value: 4. 0.5190 for the hedge ratio and $5.59 for the put option's value 5. None of these answers are correct
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