Suppose the stock price is 100, the riskless rate is 5%. What is the price of a 1 year call struck at 100 if the volatility is 0? How would you hedge the call?

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- Oct 5th 2007, 10:26 AMbluesilverQuestion from Financial Math
Suppose the stock price is 100, the riskless rate is 5%. What is the price of a 1 year call struck at 100 if the volatility is 0? How would you hedge the call?