Consider an increase in the volatility of the stock in the previous problem. Suppose that if the

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Consider an increase in the volatility of the stock in the previous problem. Suppose that if the stock increases in price, it will increase to $ 130, and that if it falls, it will fall to $ 70. Show that the value of the call option is now higher than the value derived in the previous problem.
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Investments

ISBN: 978-0071338875

8th Canadian Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter

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