Question
You obtained the following information for the TTR stock: Market price per share at t=0, P0, is $52. Expected price per share at t=1, E(P1),
You obtained the following information for the TTR stock:
Market price per share at t=0, P0, is $52.
Expected price per share at t=1, E(P1), is $60.
Expected dividend per share during this time period, E(D1), is $1.5.
RF=.05
Beta for the stock=1.4
Market risk premium (RM-RF)=.08
Is the stock currently over- or under-priced?
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Options Futures and Other Derivatives
Authors: John C. Hull
10th edition
013447208X, 978-0134472089
