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describe how you would hedge a short position in a European (plain vanilla) call with six weeks to maturity if the spot price is 60, the strike is 65 and σ = 0.3, r=0.1. You rehedge every week. Assume that the stock will follow the following path for the end-of-week prices: 63, 59, 64, 68, 64, 67. describe how your hedging position changes every week and what trades you should put in to do so. Assume there are no transaction costs. What is the hedging cost?

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