Answer question 43 again when 2 = .50. How does a change in the variance of

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Answer question 43 again when σ2 = .50. How does a change in the variance of the stock’s return affect the value of the call option?

Question 43

Use the Black–Scholes option pricing formula to compute the value of a call option, given the following information:image text in transcribed

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Statistics For Business And Financial Economics

ISBN: 9781461458975

3rd Edition

Authors: Cheng Few Lee , John C Lee , Alice C Lee

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