(Pricing a call) A 1-month European call option is currently selling for $3.00. The exercise price of...

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(Pricing a call) A 1-month European call option is currently selling for $3.00.

The exercise price of the option is $40, and the current stock price is S = $43.

The monthly interest rate is 0.5% and the monthly volatility of the stock return is at 7%. According to the Black–Scholes formula, is the market price correct?

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Principles Of Finance Wtih Excel

ISBN: 9780190296384

3rd Edition

Authors: Simon Benninga, Tal Mofkadi

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Question Posted: Jun 10, 2024 02:01 AM

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(Pricing a call) A 1-month European call option is currently selling for $3.00. The exercise price of...

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Principles Of Finance Wtih Excel

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