9. A 6-month call option on the stock of Costello Equipment Company permits the holder to acquire...

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9. A 6-month call option on the stock of Costello Equipment Company permits the holder to acquire one share at $30. Presently, share price is $25, and the ex-

, - ) pected standard deviation of its continuously compounded return is .20. The short-term annual interest rate is 8 percent.

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