A share price is currently $80. At the end of three months, it will be either $84
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A share price is currently $80. At the end of three months, it will be either $84 or $76. Ignoring interest rates, calculate the value of a three-month European call option with exercise price $79. You must use both the methods of setting up the delta-hedged portfolio, and the risk-neutral probability method.
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Dudhat Vaidehi
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