Value of a Call Option Equity in REM plc is currently selling for 25 per share. In

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Value of a Call Option Equity in REM plc is currently selling for £25 per share. In one year the price will be either £20 or £30. T-bills with one year to maturity are paying 10 per cent. What is the value of a call option with a £20 exercise price? A

£6 exercise price?

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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