13. Binomial and BlackScholes models (S22-2-S22-3) The current price of United Carbon (UC) stock is $200. The

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13. Binomial and Black–Scholes models (S22-2-S22-3) The current price of United Carbon

(UC) stock is $200. The standard deviation is 22.3% a year, and the interest rate is 21% a year.

A one-year call option on UC has an exercise price of $180.

a. Use the Black–Scholes model to value the call option on UC. You may find it helpful to use the spreadsheet version of the model, accessible through the Beyond the Page feature.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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Question Posted: Jul 31, 2024 08:04 AM

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13. Binomial and BlackScholes models (S22-2-S22-3) The current price of United Carbon (UC) stock is $200. The

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Principles Of Corporate Finance

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