b. Now recalculate the value of this call option, but use the following parameter values. Each change

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b. Now recalculate the value of this call option, but use the following parameter values. Each change should be considered independently.

i. Time to expiration two years.

ii. Standard deviation 50% per year.

iii. Exercise price $60.

iv. Stock price $60.

v. Interest rate 6%.

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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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