You buy a 50-strike 6-month call option on a stock at a price of 5. The continuously

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You buy a 50-strike 6-month call option on a stock at a price of 5. The continuously compounded risk-free interest rate is 5%.

At the end of 6 months, the profit from the long call option is 4.

Calculate the price of the stock at the end of 6 months.

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Derivative Pricing

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Question Posted: Nov 22, 2023 08:17 AM

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You buy a 50-strike 6-month call option on a stock at a price of 5. The continuously

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In terms of the 6month stock price S05 the profit from the long call is S05 50 5e 00505 Be...View the full answer

Derivative Pricing

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