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Given the following parameters use risk-neutral valuation to value a call option. Current stock price: $73.00 Stock will increase or decrease next year by: 15
Given the following parameters use risk-neutral valuation to value a call option.
| Current stock price: | $73.00 |
| Stock will increase or decrease next year by: | 15 pct. |
| Call Option strike price: | $70.00 |
| Time to expiration: | 1 year |
| Risk free rate: | 8 pct. |
Group of answer choices
Value of call: $9.90
Value of call: $12.92
Value of call: $8.19
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
13th edition
1285198840, 978-1285198842
