Question: How can a call option be priced by using the replicating portfolio method? And What does it tell you about the nature of call options,

How can a call option be priced by using the replicating portfolio method? And What does it tell you about the nature of call options, or any option for that matter?

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To price a call option using the replicating portfolio method we establish a portfolio of the underlying asset and a riskfree asset that mimics the pa... View full answer

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