You have looked in the financial press c found the following information: Current stock price...
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You have looked in the financial press c found the following information: ▪ Current stock price = $50 Put price = $1.15 Exercise price = $45 ▪ Risk-free rate = 5% Expiration in 1 year ■ ■ What is the call price? ▪ 50+ 1.15 = C + 45 / (1.05) C = 8.29 You have looked in the financial press c found the following information: ▪ Current stock price = $50 Put price = $1.15 Exercise price = $45 ▪ Risk-free rate = 5% Expiration in 1 year ■ ■ What is the call price? ▪ 50+ 1.15 = C + 45 / (1.05) C = 8.29
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The call price is 829 Explanation The current stock price is 50 and the ... View the full answer
Related Book For
Governmental and Nonprofit Accounting
ISBN: 978-0132751261
10th edition
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
Posted Date:
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