Question: If while valuing a put option using a binomial tree you find a hedge ratio=3/5 is necessary, what does this mean should be in our
If while valuing a put option using a binomial tree you find a hedge ratio=3/5 is necessary, what does this mean should be in our portfolio to have a riskless gain in either state of the world?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
