Question
A call option has an exercise price of $45 and matures in three months. The current stock price is $46, and the risk-free rate is
A call option has an exercise price of $45 and matures in three months. The current stock price is $46, and the risk-free rate is 3 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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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker
4th Edition
1284029867, 978-1284029864
