Question: a. Set up a perfect hedge and compute the put options value. Let the put have the same strike price K = $105. b. What

a. Set up a perfect hedge and compute the put option’s value. Let the put have the same strike price K = $105.
b. What is the hedge ratio? What does it signify?

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a The puts values at expiration are p U max105 1207739 0 0 p D max105 894715 0 155285 for stock ... View full answer

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