A share currently sells for $40. In the next six months, the share will either go up

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A share currently sells for $40. In the next six months, the share will either go up to $45 or fall to $36. If the risk-free rate is 5% per year, calculate the current market price of a call option on this share with an expiration date in six months and a strike price of $39.

Posted Date: May 18, 2024 11:15 PM

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A share currently sells for $40. In the next six months, the share will either go up

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