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Apply the Black-Scholes option valuation model to solve the following problems. P1. A stock sells for $30. What is the value of a one-year call
Apply the Black-Scholes option valuation model to solve the following problems. P1. A stock sells for $30. What is the value of a one-year call option to buy the stock at $25, if debt currently yields 10 percent? (Assume (Fd1) and F9(d2) = 1.)
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