Find the risk-neutral probability of an "up" move FOR YOUR TREE. Hint: you can't recycle your risk neutral probability from the call option.
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Q72: Suppose that you have written a call
Q72: Which of the following is correct?
A)The value
Q73: Find the hedge ratio for a put
Q74: Find the dollar value today of a
Q75: Verify that the dollar value of your
Q77: Find the value of a one-year call
Q78: The Black-Scholes option pricing formulae
A)are used widely
Q79: Value a 1-year call option written on
Q80: The same call from the last question
Q81: State the composition of the replicating portfolio;
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