3. 15. BlackScholes [LO 25.2] A share is currently priced at $47. A call option with an...
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3. 15.
Black–Scholes [LO 25.2] A share is currently priced at $47. A call option with an expiration of one year has an exercise price of $50. The risk-free rate is 12 per cent per year, compounded continuously, and the standard deviation of the share’s return is infinitely large. What is the price of the call option?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781743768051
8th Edition
Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan
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