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(Solved): Mr. Clueless wants to set up a riskless portfolio by taking a position in options and in the underly ...



Mr. Clueless wants to set up a riskless portfolio by taking a position in options and in the underlying asset. Explain what Mr. Clueless needs to do:

To obtain a riskless portfolio at time 0.

To keep his portfolio risk neutral at time 1 and why.



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Mr. Clueless should buy the desired quanti...
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