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The spot price of BOA is $150. The risk free rate is 3%. Assume that BOA follows a log-normal model with volatility 20% and expected
The spot price of BOA is $150. The risk free rate is 3%. Assume that BOA follows a log-normal model with volatility 20% and expected rate of return 2%. Consider a 1-year 150-180 bull spread on BOA made of calls. What is the probability that the payoff this bull-spread is $20 or more? Select one: O a. below 0.42 O b. none of the above O c. above 0.46 d between 42 and 46 The spot price of BOA is $150. The risk free rate is 3%. Assume that BOA follows a log-normal model with volatility 20% and expected rate of return 2%. Consider a 1-year 150-180 bull spread on BOA made of calls. What is the probability that the payoff this bull-spread is $20 or more? Select one: O a. below 0.42 O b. none of the above O c. above 0.46 d between 42 and 46
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