A stock price is currently $ 5 0 . Over each of the next two three -

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Question:

A stock price is currently $

50 .

Over each of the next two three

-

month periods it is expected to go up by

6 %

or down by

5 % .

The risk

-

free interest rate is

4 %

per annum with continuous compounding. What is the value of a six

-

month European call option with a strike price of $

52 ?

Round your dollar answer to two decimals.

Posted Date: May 19, 2024 03:02 AM

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A stock price is currently $ 5 0 . Over each of the next two three -

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