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You are asked to compare call options for two non-dividend paying stocks with the given parameters. Risk free rate is 6%. Which call option is
You are asked to compare call options for two non-dividend paying stocks with the given parameters. Risk free rate is 6%. Which call option is written on the stock with lower price? Why? Te K ow Price of option A .254 254.45 $104 BA 1.504 254.652 $104
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