The current price of a stock is $40. In 1 year, the price will be either $60
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The current price of a stock is $40. In 1 year, the price will be either $60 or $30. The annual risk-free rate is 5%. Find the price of a call option on the stock that has a strike price of $42 and that expires in 1 year.
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Related Book For
Financial Management Theory & Practice
ISBN: 9780324652178
12th Edition
Authors: Eugene BrighamMichael Ehrhardt
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