A companys stock is selling for $4 The company has no outstanding debt Analysts consider the liquidation value of the company to be at least $300,000 and there are 100,000 shares outstanding What volatility smile would you expect to see ...

In liquidation the companys stock price must be at least 30000 ...

A companys stock is selling for $4. The company has no outstanding debt. Analysts consider the liquidation

Question:

A company’s stock is selling for $4. The company has no outstanding debt. Analysts consider the value of the company to be at least $300,000 and there are 100,000 shares outstanding. What volatility smile would you expect to see?
Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....