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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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