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How models used for valuing stock options

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Reference no: EM131435293

"Options" Please respond to each of the following separately. Be specific and very detailed. (Mention your sources):

1) Create a scenario where an investor would benefit from using option contracts to minimize risk.

2) Evaluate how models used for valuing stock options can be adapted to other underlying assets such as stock indexes.

Reference no: EM131435293

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