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    Derivatives and Risk Management Study Set 2
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    Exam 4: Option Pricing Models: the Binomial Model
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    If a Call Is Overpriced and You Buy the Call
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If a Call Is Overpriced and You Buy the Call

Question 8

Question 8

True/False

If a call is overpriced and you buy the call and sell short the stock,it is equivalent to investing money at less than the risk-free rate.

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