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  3. b. a stock is trading at a price of $50 and has be

b. A stock is trading at a price of $50 and has beta 1.5. A...

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b. A stock is trading at a price of $50 and has beta 1.5. A call option can be replicated, over a very short period of time, by a portfolio consisting of 0.6 shares of the stock (this is the delta of the call) and a risk-free loan of $20. What is the beta of the call option? (9 marks)

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