Question
The price of a European put option on a stock with a strike price of $65 is $5. The stock price is $63, the continuously
The price of a European put option on a stock with a strike price of $65 is $5. The stock price is $63, the continuously compounded risk-free rate (all maturities) is 2.5% and the time to maturity is one year. A dividend of $2 is expected in six months. What is the price of a one-year European call option on the stock with a strike price of $65?
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Financial Intelligence An Entrepreneurs Guide Volume 1
Authors: Income Mastery
1st Edition
1647772648, 978-1647772642
