Question
The price of Dimension stock will be either $65 or $87 at the end of the year. Call options are available with one year to
| The price of Dimension stock will be either $65 or $87 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 3.6 percent. Suppose the current price of Dimension stock is $70. What is the value of the call option if the exercise price is $60 per share? |
| $12.08 |
| $14.48 |
| $9.58 |
| $10.39 |
| $13.62 |
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
11th edition
134141083, 978-0134141084
