Rework Problem 12-2 using the Black-Scholes model to estimate the value of the option: The risk-free rate

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Rework Problem 12-2 using the Black-Scholes model to estimate the value of the option: The risk-free rate is 6 percent. (Hint: Assume the variance of the project’s rate of return is 1.11 percent.)

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Financial management theory and practice

ISBN: 978-0324422696

12th Edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

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