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A stock is currently priced at $65. The stock will either increase or decrease by 12% over the next year. There is a call option
A stock is currently priced at $65. The stock will either increase or decrease by 12% over the next year. There is a call option on the stock with a strike price of $60 and one year until expiration. Assume the risk-free rate is 4%. Assuming this option is based on one share of stock, What is call option payoff if stock price goes up one year later? What is the price (risk-neutral value ) of the call option? (DO NOT ROUND intermediate steps, round and format your answer into ONE decimal, for example: 12.3)" A stock is currently priced at $65. The stock will either increase or decrease by 12% over the next year. There is a call option on the stock with a strike price of $60 and one year until expiration. Assume the risk-free rate is 4%. Assuming this option is based on one share of stock, What is call option payoff if stock price goes up one year later? What is the price (risk-neutral value ) of the call option? (DO NOT ROUND intermediate steps, round and format your answer into ONE decimal, for example: 12.3)
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