Question: Based on the information in the previous question, if the value of the theoretical call option determined from the binomial option pricing model is equal
Based on the information in the previous question, if the value of the theoretical call option determined from the binomial option pricing model is equal to the actual value of the option observed in the market place, what is the return to the investor on a fully hedged portfolio.
[S = $65, X = $60, up % = 15%, down % = 15%, r = 2%]
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