The price of stocks in the (mathrm{A}) company is currently 40. At the end of

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The price of stocks in the " \(\mathrm{A}\) " company is currently 40. At the end of one month it will be either 42 or 38 . The risk free interest rate is \(8 \%\) per annum. What is the value of a one-month European call option with a strike price of \(\$ 39\) ?

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Lectures On Corporate Finance

ISBN: 9789812568991

2nd Edition

Authors: Peter L Bossaerts, Bernt Arne Odegaard

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