Question: a. Given the preceding data, set up a perfect hedge and compute the call options value. b. What is the hedge ratio? What does it

a. Given the preceding data, set up a perfect hedge and compute the call option’s value.
b. What is the hedge ratio? What does it signify?

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a The calls values at expiration date are c U max1207739 105 0 157739 c D max894715 105 0 0 for st... View full answer

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