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ou purchased a share of XYZ Corporation at 2 5 , and it has now increased to 4 5 . You are given: ( i
ou purchased a share of XYZ Corporation at and it has now increased to
You are given:
i the annual risk free rate is ;
ii the price for a three month call option with an exercise price of is ;
iii XYZ does not pay dividends; and
iv you want to lock in a sale price of at least for the next three months.
What is the cost of the option that achieves this result?
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