Question
A stock is currently priced at $43. A call option with an expiration of 1 year has an exercise price of $45. The risk-free rate
| A stock is currently priced at $43. A call option with an expiration of 1 year has an exercise price of $45. The risk-free rate is 4 percent per year, compounded continuously, and the standard deviation of the stocks return is infinitely large. What is the price of the call option? (Do not round intermediate calculations.) |
| Call option price | $ |
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Capital Market Finance
Authors: Patrice Poncet, Roland Portait, Igor Toder
1st Edition
3030845982, 978-3030845988
