What should a call option be worth if it has 6 months to expiration, risk free rate

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What should a call option be worth if it has 6 months to expiration, risk free rate is 3, has strike price of $50, and its underlying stock is trading currently at $45 with equal chances of getting to $60 and $30 in the next 6 months

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Practical financial management

ISBN: 978-0324422634

5th Edition

Authors: William r. Lasher

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Posted Date: Sep 08, 2020 12:15 AM

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What should a call option be worth if it has 6 months to expiration, risk free rate

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Calculation can be done as follows Given Asset price 445 Strike price 50 Expected st... View the full answer

Practical financial management

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