Question
onsider a stock with 42% yearly volatility and a current price of 437.5, moreover, the annual risk-free rate is r=0.0125. Assume you want to build
onsider a stock with 42% yearly volatility and a current price of 437.5, moreover, the annual risk-free rate is r=0.0125. Assume you want to build a portfolio of options containing one call option with strike K1=420, and one put option with strike K2=460, and the maturity of both options is one year. Compute the call option price C1
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Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio
Authors: Robert A.Weigand
1st edition
978-111863091, 1118630912, 978-1118630914
