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A 8-month call option contract on 100 shares of Home Depot common stock with a strike price of $59.95 can be purchased for $616. Assuming
A 8-month call option contract on 100 shares of Home Depot common stock with a strike price of $59.95 can be purchased for $616. Assuming that the market price of Home Depot stock rises to $75.79 per share by the expiration date of the option, what is the call holder's profit? What is the holding period return? The profit this option would generate over the 8-month holding period is $ (Round to the nearest cent.) A stock trades for $43 per share. A call option on that stock has a strike price of $54 and an expiration date nine months in the future. The volatility of the stock's returns is 37%, and the risk-free rate is 3%. What is the Black and Scholes value of this option? The Black and Scholes value of this call option is $. (Round to the nearest cent.)
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