Question
Suppose a stock worth $50 today is equally likely to be worth $100 or $25 a year from today. What is a fair price to
Suppose a stock worth $50 today is equally likely to be worth $100 or $25 a year
from today. What is a fair price to pay today for the option to buy this stock a
year from now?
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Practical Financial Management
Authors: William R. Lasher
7th edition
128560721X, 9781133593669, 1133593682, 9781285607214, 978-1133593683
