Question
An investor is considering purchasing 1-year call options in dallanium, which is currently trading at $566.20 per oz. The price of dallanium after one year
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An investor is considering purchasing 1-year call options in dallanium, which is currently trading at $566.20 per oz. The price of dallanium after one year will be either up by 20% or down by 10% and the only available call option has a strike price of $600 per oz. If the risk-free rate is 3.2% p.a., the value of the call option is closest to:
A. $0.00 B. $33.87 C. $79.44
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Financial Institutions Investments And Management An Introduction
Authors: Herbert B. Mayo
8th Edition
0324178174, 9780324178173
