Question
Suppose a stock is currently worth $20.00 and in one-year will either increase by 30.00% or decrease by 25.00%. Assuming the risk-free rate is 5.00%
Suppose a stock is currently worth $20.00 and in one-year will either increase by 30.00% or decrease by 25.00%. Assuming the risk-free rate is 5.00% and that the company pays no dividends, what is the value of a put option with a strike price of $25.00 option?
Group of answer choices
$10.00
$4.33
$5.00
$3.81
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The Company Valuation Playbook Invest With Confidence
Authors: Charles Sunnucks
1st Edition
1838470816, 978-1838470814
