4. 6. Using the pricing equation [LO 24.2] A one-year call option contract on Collarenebry Cool Stores

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4. 6.

Using the pricing equation [LO 24.2] A one-year call option contract on Collarenebry Cool Stores shares sells for $8.45. In one year, the shares will be worth $64 or $81 per share. The exercise price on the call option is $70.

What is the current value of the shares if the risk-free rate is 3 per cent?

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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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Question Posted: Oct 04, 2024 04:02 AM

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4. 6. Using the pricing equation [LO 24.2] A one-year call option contract on Collarenebry Cool Stores

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Fundamentals Of Corporate Finance

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