Question
A stock price is currently $50. It is known that at the end of two months it will be either $56 or $46. The riskfree
A stock price is currently $50. It is known that at the end of two months it will be either $56 or $46. The riskfree interest rate is 11% per annum with continuous compounding. What is the value of a 8month European call option with a strike price of $49?
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Financial Economics
Authors: Frank J. Fabozzi, Edwin H. Neave, Guofu Zhou
1st Edition
0470596201, 9780470596203
