A stock price is currently $20. Tomorrow, news is expected to be announced that will either increase

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A stock price is currently $20. Tomorrow, news is expected to be announced that will either increase the price by $5 or decrease the price by $5. What are the problems in using Black-Scholes-Merton to value 1-month options on the stock?

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Options Futures And Other Derivatives

ISBN: 9780273759072

8th Global Edition

Authors: John Hull

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Question Posted: Oct 21, 2024 10:00 AM

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A stock price is currently $20. Tomorrow, news is expected to be announced that will either increase

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Options Futures And Other Derivatives

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