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Consider a 1-year option with exercise price $50 on a stock with annual standard deviation 30%. The T-bill rate is 3% per year. Find (dy)
Consider a 1-year option with exercise price $50 on a stock with annual standard deviation 30%. The T-bill rate is 3% per year. Find (dy) for stock prices (a) $45, (b) $50, and (c) $55. (Do not round intermediate calculations. Round your answers to 4 decimal places.) N(01) s $ 45 $ 50 $ 55
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