Question
1.A call option has an exercise price of $60 and matures in six months. The current stock price is $64, and the risk-free rate is
1.A call option has an exercise price of $60 and matures in six months. The current stock price is
$64, and the risk-free rate is 5 percent per year, compounded continuously. What is the price of the call if the standard deviation of the stock is 0 percent per year?
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
