Question
A stock with a current price of $71 has a call option available with a strike price of $75. The stock will move up by
A stock with a current price of $71 has a call option available with a strike price of $75. The stock will move up by a factor of .88 or down by a factor of .73 each period for the next two periods and the risk-free rate is 1.8 percent. What is the price of the call option today?
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The Meaningful Money Handbook
Authors: Pete Matthew
1st Edition
0857196510, 978-0857196514
