Question
The current price on a common stock is 30$/share and its volatility is 25%. The call option for this stock has a strike/exercise price of
The current price on a common stock is 30$/share and its volatility is 25%. The call option for this stock has a strike/exercise price of $35/share and will expire in 1 year. The current risk-free interest rate is 4%.
Calculate the price of this call option.
Step-by-step work is greatly appreciated!! Thank you
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
9th Edition
0324656122, 978-0324656121
