Question: So = 10, u = 1.2, d = 0.9, h = 1, 8 = 0, and r = 0 The call option expires at time

So = 10, u = 1.2, d = 0.9, h =

So = 10, u = 1.2, d = 0.9, h = 1, 8 = 0, and r = 0 The call option expires at time 2 and has a strike price of 10. Compute the price of the call option at time 0 and compute the dynamic hedging strategy needed to replicate the call option payoffs at time 2. So = 10, u = 1.2, d = 0.9, h = 1, 8 = 0, and r = 0 The call option expires at time 2 and has a strike price of 10. Compute the price of the call option at time 0 and compute the dynamic hedging strategy needed to replicate the call option payoffs at time 2

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