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Melissa wanted to buy Apple Inc. stock, which had a price range of $ 4 0 9 to $ 5 8 2 a month later.
Melissa wanted to buy Apple Inc. stock, which had a price range of $ to $ a month later. The current share price is $ Her broker advises her that the price of this share could rise to $ within the next month or so so she should purchase a onemonth Call of Apple. To be prudent in purchasing the call, the share price should be greater than or equal to $ which her broker could not guarantee. Though she understands the market's uncertainty, she wants to know the probability of reaching the share price of $ so that she can justify purchasing a one month Call of Apple at the execution price of $ Take the continuous compounded riskfree interest to be pa
Melissa wanted to buy Apple Inc. stock, which had a price range of $ to $ a month later. The current share price is $ Her broker advises her that the price of this share could rise to $ within the next month or so so she should purchase a onemonth Call of Apple. To be prudent in purchasing the call, the share price should be greater than or equal to $ which her broker could not guarantee. Though she understands the market's uncertainty, she wants to know the probability of reaching the share price of $ so that she can justify purchasing a one month Call of Apple at the execution price of $ Take the continuous compounded riskfree interest to be pa
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