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Use two-state option pricing model to find the value of a call option and the intrinsic value given the following parameters: T-bills yield: 2.5 pct.
Use two-state option pricing model to find the value of a call option and the intrinsic value given the following parameters:
| T-bills yield: | 2.5 pct. |
| Current stock price: | $32.00 |
| No possibility stock will be worth less this amount in one year: | $30.00 |
| Exercise Price: | $27.00 |
| Value of call = $5.66, Intrinsic Value = $2.00 |
| Value of call = $3.66, Intrinsic Value = $5.00 |
| Value of call = $5.66, Intrinsic Value = $5.00 |
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Understanding Terrorist Finance
Authors: T. Wittig
2011th Edition
0230291848, 978-0230291843
