Question
A Stock in O corp currently sells for 80 a share and is expected to increase to 110 a sgare or decrease by 60 a
A Stock in O corp currently sells for 80 a share and is expected to increase to 110 a sgare or decrease by 60 a share in one year. Call options on O stock which expire in one year are at an exercise price of 75 and risk free rate of 2 % per annum. What is market value premium today of a call option on O stock?
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
8th edition
134730364, 978-0134730363
