Calculate and compare the risk

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Calculate and compare the risk (betas) of the following investments: In each case assume that the exercise price of the option is $430, (a) a share of Google stock; (b) a one-year call option on Google; (c) a one-year put option; (d) a portfolio consisting of a share of Google stock and a one-year put option; (e) a portfolio consisting of a share of Google stock, a one-year put option, and the sale of a one-year call. In each case assume that the exercise price of the option is $430, which is also the current price of Google stock.

Reference no: EM131307888

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