A European capped call option is like a European call option except that the payoff is HX for some constant H X, instead of S X, when the terminal stock price exceeds H Construct a portfolio of European options with an identical payoff Explain your reasoning A European capped call option is like a...

To construct a portfolio of European options with an identical payoff to a European capped call opti ...

A European capped call option is like a European call option except that the payoff is...

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Derivatives Markets

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Authors: Robert McDonald

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Derivatives Markets

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