Question
Stock price is $100 now. In one period, it can go up to $125 or down to $80. Interest rate per period is 5%. A
Stock price is $100 now. In one period, it can go up to $125 or down to $80. Interest rate per period is 5%. A call option with a strike price X = 110 and expiring at the end of the period has a premium of:
| a. | 11.88 | |
| b. | 7.94 | |
| c. | 4.92 | |
| d. | 13.23 |
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Financial Management For Public Health And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
7th Edition
1071835335, 978-1071835333
