Question
A stock is currently priced at $78 and will move up by a factor of 1.23 or down by a factor of .89 over the
A stock is currently priced at $78 and will move up by a factor of 1.23 or down by a factor of .89 over the next period. The risk-free rate of interest is 4.2 percent. What is the value of a call option with a strike price of $79? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Essentials Of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
9th International Edition
1259254801, 9781259254802
