Question
Suppose Sealion Tasmania share price can go up by 15% or down by 13% every six months. You own a one-year call on the stock.
Suppose Sealion Tasmania share price can go up by 15% or down by 13% every six months. You own a one-year call on the stock. The interest rate is 10%, and the current stock price is $60.
What exercise price leaves you indifferent between holding the call or exercising it now?
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
