Question
The price of Ervin Corp. stock will either be $63 or $88 at the end of the year. Call options are available with one year
The price of Ervin Corp. stock will either be $63 or $88 at the end of the year. Call options are available with one year until expiration. Continuously compounded T-bills currently yield 2.49 %. Suppose the current price of Ervin stock is $73. What is the value of the call option if the strike price is $75 per share? (Round answer to 2 decimal places. Do not round intermediate calculations).
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Public Finance In A Changing World
Authors: Peter Birch Sorensen
1998th Edition
0333682211, 978-0333682210
