20. Consider again the Netscape PEPS discussed in this chapter and assume the following: the price of
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20. Consider again the Netscape PEPS discussed in this chapter and assume the following:
the price of Netscape is $39.25, Netscape is not expected to pay dividends, the interest rate is 7%, and the 5-year volatility of Netscape is 40%. What is the theoretical value of the PEPS?
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Related Book For
Derivatives Markets Pearson New International Edition
ISBN: 978-1292021256
3rd Edition
Authors: Robert L. Mcdonald
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