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You own 100 stocks of Amazons stock. The current stock price is $3,120. You believe that the stock price will double in two years ii)
You own 100 stocks of Amazons stock. The current stock price is $3,120. You believe that the stock price will double in two years
ii) The price of a call option on Amazon's stock that expires in 9 months with a strike price of $3,080 is $400. If the 9-month Treasury bill is 1.315% (APR rate), what is the implied volatility? iii) Using the implied volatility in the previous question, and based on the Black-Scholes-Merton model, what is the expected revenue from the strategy you chose in part (i)Step by Step Solution
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