Question
The stock of Micron (Ticker: MU) closed on December 5 th at $66.29/share. The risk-free rate is 1.5% (continuously-compounded). A 9-month European call option on
The stock of Micron (Ticker: MU) closed on December 5th at $66.29/share. The risk-free rate is 1.5% (continuously-compounded). A 9-month European call option on MU at a strike price of K=65 is priced at $6.50/share. Break down the value of the call into the intrinsic value, the time value, and the insurance value.
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Fundamentals Of Corporate Finance
Authors: David W Blackwell, Robert Parrino, David S Kidwell
1st Edition
0471270563, 9780471270560
