Delta Hedging Portfolio (Risk Free asset, Underlying Share and European Call Option)

Discussion in 'CM2' started by Jia Syuen, May 18, 2021.

  1. Jia Syuen

    Jia Syuen Very Active Member

    In the marking scheme for April 2005 Q10 (iii),

    I am not sure how this is formed.
    [​IMG]

    Hope there is someone who can explain to me. Thank you in advance.
     
    Last edited by a moderator: May 18, 2021
  2. Steve Hales

    Steve Hales ActEd Tutor Staff Member

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