Question
The current price of a non-dividend-paying stock is $30. Over the next six months, it is expected to rise to $36 or fall to $26.
The current price of a non-dividend-paying stock is $30. Over the next six months, it is expected to rise to $36 or fall to $26. Assume the risk-free rate is zero. An investor sells call options with a strike price of $32. What is the value of each call option?
O $2.0
$1.6
O $1.9
$1.8
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Finance For Housing An Introduction
Authors: Cathy Davis
1st Edition
1447306481, 978-1447306481
