Question
23.18 A call option matures in six months. The underlying stock price is $75, and the stocks return has a standard deviation of 30 percent
23.18 A call option matures in six months. The underlying stock price is $75, and the stocks return has a standard deviation of 30 percent per year. The risk-free rate is 4 percent per year, compounded continuously. If the exercise price is $0, what is the price of the call option?
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The Finance Book
Authors: Stuart Warner, Si Hussain
2nd Edition
1292401982, 978-1292401980
