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Q 27.11 Think about what a call with infinite time to maturity and strike price of $0 really isit is simply the stock itself. The
Q 27.11 Think about what a call with infinite time to maturity and strike price of $0 really isit is simply the stock itself. The (Black-Scholes) answer is that this must be equivalent to owning the underlying stock itself.
Use the parameters :
S0 = $80.50,
rF = 1.77%,
and = 50%.
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