Question
The price of Ervin Corp. stock will either be $63 or $82 at the end of the year. Call options are available with one year
The price of Ervin Corp. stock will either be $63 or $82 at the end of the year. Call options are available with one year until expiration. Continuously compounded T-bills currently yield 2.34 %. Suppose the current price of Ervin stock is $76. What is the value of the call if the strike price is $55 per share?
(Round answer to 2 decimal places. Do not round intermediate calculations).
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Introduction To Personal Finance
Authors: John E Grable, Lance Palmer
1st Edition
1119626633, 9781119626633
