BlackScholes A stock is currently priced at $35. A call option with an expiration of one year

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Black–Scholes A stock is currently priced at $35. A call option with an expiration of one year has an exercise price of $50. The risk-free rate is 12 percent per year, compounded continuously, and the standard deviation of the stock’s return is infi nitely large. What is the price of the call option? LO.1

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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