BP plc shares are currently selling for 4.29 per share. A put option with an exercise price
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BP plc shares are currently selling for £4.29 per share. A put option with an exercise price of £4.40 sells for £0.25 and expires in 3 months. If the risk-free rate of interest is 2.6 per cent per year, compounded continuously, what is the price of a call option with the same exercise price?
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Related Book For
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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