Question
The price of a stock, which pays no dividends, is $69.7 and the strike price of a one year European call option on the stock
The price of a stock, which pays no dividends, is $69.7 and the strike price of a one year European call option on the stock is $58.4. The risk-free rate is 4.1% (continuously compounded. Assuming there are no arbitrage opportunities, what is the lowest possible price of the option?
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis C. Gapenski
2nd Edition
1567931650, 978-1567931655
