Question: (a) In a single sentence, explain why it is useful from a risk-management perspective for the writer of a call option to simultaneously hold the
(a) In a single sentence, explain why it is useful from a risk-management perspective for the writer of a call option to simultaneously hold the underlying asset (3 marks) (b) Consider an at-the-money European call option and a European put option on the same underlying asset (non-dividend paying). Both options have the same exercise price and same expiration date. Which option has the higher value? Explain
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