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A stock is currently $24.In six months it will be worth either $20 or $30.The interest rate is 2%.Consider a call option with astrike price
A stock is currently $24.In six months it will be worth either $20 or $30.The interest rate is 2%.Consider a call option with astrike price of $23.
What is the approximate value of the risk-neutral probability, P, for this option?
Group of answer choices
- .50
- .44
- .46
- .48
What is the approximate value of this option?
Group of answer choices
- $2
- $4
- $3
- $1
- $5
What is the approximate value of the risk-neutral probability, P, for this option?
Group of answer choices
- .38
- .40
- .36
- .42
- .34
What is the approximate value of this option?
Group of answer choices
- $1.50
- $1.70
- $1.80
- $1.90
- $1.60
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