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QUESTION 6 Imagine that Google has a probability of 8 0 % to increase by 1 0 % and a probability of 2 0 %
QUESTION Imagine that Google has a probability of to increase by and a probability of to fall by over the next month. Apple, on the other hand, has a probability of to increase by and a probability of to fall by Apple Call will be more expansive than Google Call Google Call will be equally expansive than Apple Call OGoogle Call will be more expansive than Apple Call O For strike below the current spot: Google Call will be equally expansive than Apple Call QUESTION Imagine that Google has a probability of to increase by and a probability of to fall by over the next month, Apple, on the other hand, has a probability of to increase by and a probability of to fall by Compare the price of Call option on Google and Apple, both with the same strike and expiry in one month. O Apple Call will be more expansive than Google Call OGoogle Call will be equally expansive than Apple Call Google Call will be more expansive than Apple Call For strike below the current spot: Google Call will be equally expansive than Apple Call
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