Question
You are given the following information concerning options on a particular stock: Stock price = $81 Exercise price = $65 Risk-free rate = 5% per
- You are given the following information concerning options on a particular stock:
- Stock price = $81
- Exercise price = $65
- Risk-free rate = 5% per year, compounded continuously
- Maturity = 8 months
- Standard deviation = 60% per year
- What is the intrinsic value of the call option?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
11th edition
77861752, 978-0077861759
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