Question
The current price of a non-dividend-paying stock is $30. Over the next 12 months it is expected to rise to $36 or fall to $24.
The current price of a non-dividend-paying stock is $30. Over the next 12 months it is expected to rise to $36 or fall to $24. Assume the risk-free rate is zero. An investor sells call options with a strike price of $22. What should be the value ofput option today?
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
