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ABC. Suppose a share of stock sells for $59 and the risk free rate = 5%. The stock price in a year will be either

ABC.

  1. Suppose a share of stock sells for $59 and the risk free rate = 5%. The stock price in a year will be either $65 or $75.
    1. What is the value of the call option with an exercise price of $65?

  1. Whats wrong here? What would you do?

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Smith and Roberson Business Law

Smith and Roberson Business Law

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