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CLASS NAME: Introduction to Financial Engineering could you please show as much of the work as possible please and thank you. Consider a 1-year gap
CLASS NAME: Introduction to Financial Engineering
could you please show as much of the work as possible please and thank you.
Consider a 1-year gap call option with the following information:
Current stock price of $50
Trigger price is 65
Strike price is $60
Risk free interest rate is .06.
Stock volatility is .40
Dividend yield rate is .03
Find the price of the gap option under Black-Scholes framework.
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