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Use your Black-Scholes option pricer to calculate the implied debt-equity correlation of Eurotunnel if its market value of equity was GBP 90.58 MM instead of
Use your Black-Scholes option pricer to calculate the implied debt-equity correlation of Eurotunnel if its market value of equity was GBP 90.58 MM instead of GBP 150 MM. (Hint: Since volatility is a function of correlation you will need to create that function and then use Goal Seek to find the correlation that causes your equity price to match the market price of equity.)
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