Answer question 57 when S = $110. How does a change in the value of the stock

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Answer question 57 when S = $110. How does a change in the value of the stock affect the value of the call option?

Question 57

You are given the following information about a stock: image text in transcribed

Calculate the value of the call option if the stock goes up in 3 out of the 5 months.

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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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Question Posted: Feb 10, 2024 01:16 PM

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Answer question 57 when S = $110. How does a change in the value of the stock

Question:

S = $100 X = $101 r = .005 n = 5 u = 1.10 d = .95 Price of stock Exercise price for a call option on the stock Interest rate per month Number of months until the option expires Amount of increase if stock goes up Amount of decrease if stock goes down

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Okay lets solve this problem Given S 100 original stock price X 101 exercise price for a call option ...View the full answer

Statistics For Business And Financial Economics

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