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 that the risk-free rate is 10%. What, to the nearest cent, is the value of a 6-month European call option on the stock with a strike price of $33?
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The Socionomic Theory Of Finance
Authors: Robert R. Prechter
1st Edition
0977611256, 978-0977611256
