Question
The riskfree rate is 5%. You own one share of a stock that does not pay dividends with current price of $110. A call option
The riskfree rate is 5%. You own one share of a stock that does not pay dividends with current price of $110. A call option with 6 months maturity and strike of $100 trades at a premium of $11. What should you do and why?
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Multinational Finance
Authors: Kirt C. Butler
4th Edition
1405181184, 978-1405181181
