Static options replication assumes that the volatility of the underlying asset will be constant. Explain this statement.

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“Static options replication assumes that the volatility of the underlying asset will be constant.” Explain this statement.

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Risk Management And Financial Institutions

ISBN: 9781119932482

6th Edition

Authors: John C Hull

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Question Posted: Mar 08, 2024 01:00 AM

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Static options replication assumes that the volatility of the underlying asset will be constant. Explain this statement.

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When used in the way described in the text it does assum...View the full answer

Risk Management And Financial Institutions

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