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Please do by hand NOT in excel 14.11 . Suppose S = $40, K-$40, = 0.30, r = 0.08, and 0. I with 2 years

image text in transcribedPlease do by hand NOT in excel
14.11 . Suppose S = $40, K-$40, = 0.30, r = 0.08, and 0. I with 2 years to expiration? b. Suppose you have a compound call giving you the right to pay $2 1 year from today to buy the option in part (a). For what stock prices in 1 year will you exercise this option? e. What is the price of this compound call? d. What is the price of a compound option giving you the right to sell the option in part (a) in 1 year for $2

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