Question
Given the following information, what is the time value of a European call option? Stock price=$18, exercise price=$10, time to expiration=2 months, risk-free rate=10% continuously
Given the following information, what is the time value of a European call option? Stock price=$18, exercise price=$10, time to expiration=2 months, risk-free rate=10% continuously compounded, standard deviation=40% annually.
| A. $7.29 | ||
| B. $8.00 | ||
| C. $8.17 | ||
| D. $8.85 | ||
| E. $9.68 |
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Fundamentals Of Corporate Finance
Authors: Stephen A Ross, Randolph W Westerfield, Bradford D Jordan
7th Edition
0073134295, 9780073134291
