Option valuation: You are considering buying a three-month put option on Wing and a Prayer Construction stock.
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Option valuation: You are considering buying a three-month put option on Wing and a Prayer Construction stock. The company’s stock currently trades for $10 per share, and its price will either rise to
$15 or fall to $7 in three months. The risk-free rate for three months is 2 percent. What is the appropriate price for a put option with a strike price of $9?
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781119795438
5th Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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