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Suppose Carol's stock price is currently $20 and does not currently pay dividends. In the next 6 months it will either fall to $10 or
Suppose Carol's stock price is currently $20 and does not currently pay dividends. In the next 6 months it will either fall to $10 or rise to $40. What is the current value of a European 6-month call option with an exercise price of $15?
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
