Question
A stock with a current price of $69 has a call option available with a strike price of $70. The stock will move up by
A stock with a current price of $69 has a call option available with a strike price of $70. The stock will move up by a factor of .96 or down by a factor of .71 each period for the next two periods and the risk-free rate is 2.6 percent. What is the price of the call option today?
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart
7th Edition
1265521972, 978-1265521974
