15. Option risk (S22-3) a. In Section 22-3, we calculated the risk (beta) of a six-month call...

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15. Option risk (S22-3)

a. In Section 22-3, we calculated the risk (beta) of a six-month call option on Amazon stock with an exercise price of $1,830. Now repeat the exercise for a similar option with an exercise price of $1,500. Does the risk rise or fall as the exercise price is reduced?

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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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