Calculate the call option value if the standard deviation on the stock is 0.6 instead of 0.5.

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Calculate the call option value if the standard deviation on the stock is 0.6 instead of 0.5. Confirm that the option is worth more using this higher volatility.

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Essentials Of Investments

ISBN: 9780073368719

7th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Oct 20, 2023 04:13 AM

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Calculate the call option value if the standard deviation on the stock is 0.6 instead of 0.5.

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Essentials Of Investments

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