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Calculate the option price using the following information: Option type European call Time to expiration 4 months Strike price $30 Current underlying stock price $32
Calculate the option price using the following information:
| Option type | European call |
| Time to expiration | 4 months |
| Strike price | $30 |
| Current underlying stock price | $32 |
| Underlying stock expected dividend | $2.00 in 2 months |
| Underlying stock volatility | 40% |
| Risk-free rate | 6% |
| Pricing model | Black-Scholes formula |
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
