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casasophia co 6/11

AAsma6y ago
Hi Sir , one question please related to option hedging calculation , in the question the spot rate at the transaction date is not given ? And I though as it is not mentioned I will just write in words explaining , but they are using the strike price in the calculation . Assist please
John MoffatJohn MoffatTutor6y ago#1
The answer is using the exercise prices in order to show what the worst outcome would be for each of them.
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