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Using the Black/Scholes Option Pricing Model, calculate the value of the call option given: S=74; X=70; T=6 months; s 2 =.50; Rf =10% What is
- Using the Black/Scholes Option Pricing Model, calculate the value of the call option given: S=74; X=70; T=6 months; s2=.50; Rf =10%
- What is the intrinsic value of the call?
- What stock price is necessary to break-even?
- ) If volatility were to decrease, the value of the call would ___________?
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