A call option has an exercise price of $75 and matures in six months. The current stock
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A call option has an exercise price of $75 and matures in six months. The current stock price is $80, and the risk-free rate is 5 percent per year, compounded continuously. What is the price of the call if the standard deviation of the stock is 0 percent per year?
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The price of a European call option can be calculated using the BlackScholes option pricing model Th...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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