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The current price of CG Industries stock is $50. In the next year, the stock price will either go up by 10% or go down
The current price of CG Industries stock is $50. In the next year, the stock price will either go up by 10% or go down by 8%. CG pays no dividends. The one-year risk-free rate is 5% and will remain constant. Assuming the Beta on CG stock is 0.75, the calculated beta for a one-year call option on CG stock with a strike price of $40 is closest to: 10.75 12.75 15.75 16.75
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
12th edition
1305041399, 1285078586, 978-1-133-9524, 9781133952428, 978-1305041394, 9781285078588, 1-133-95241-0, 978-1133952411
