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A stock is currently priced at $44. 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 $44. A call option with an expiration of 1 year has an exercise price of $45. The risk-free rate is 3 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 and round your answer to the nearest whole number, e.g., 32.) |
Call option price | $ |
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