Question
Use the following information calculate the option's price. You are analyzing a call option for Boeing's stock, which is currently priced at $190 per
Use the following information calculate the option's price. You are analyzing a call option for Boeing's stock, which is currently priced at $190 per share (stock price). The option's exercise price is $215. The option has a three-month time to maturity, the 3-month risk-free rate is 0.3% and the market return is expected to be 7.6%. You expect the following possible stock prices in three months ($170 or $249). Calculate the value of this option using the portfolio replication method. You will be asked to input some of your work below.
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