Question
Cooper Industries' stock is currently selling for $74.00 a share but is expected to decrease to either $66.60 or increase to $85.10 a share over
Cooper Industries' stock is currently selling for $74.00 a share but is expected to decrease to either $66.60 or increase to $85.10 a share over the next year. The risk-free rate is 3.5 percent. What is the current value of a 1-year call option with an exercise price of $74?
| $4.25 | ||
| $5.43 | ||
| $5.79 | ||
| $4.72 | ||
| $5.15 |
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Financial Management For Public Health And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
7th Edition
1071835335, 978-1071835333
