Question
The current stock price of GYK company is $130. A call option on the company stock has a strike price of $125 with 12-month expiry.
The current stock price of GYK company is $130. A call option on the company stock has a strike price of $125 with 12-month expiry. The share price will either increase or decrease by 15 in one year's time. The current effective annual risk-free rate is 5% is expected to stay the same for the next year> Assume all investors are risk neutral. What is the probability that the stock price will go up
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Fundamentals Of Futures And Options Market
Authors: John C. Hull
6th Edition
0132242265, 9780132242264
