Question: derivatives securities, please provide correct answer Question 6 0.0/8.0 points (graded) Rush-and-Cash's stock is currently traded at $170 per share. The stock price will either

derivatives securities, please provide correct answer

derivatives securities, please provide correct answer Question 6 0.0/8.0 points (graded) Rush-and-Cash's

Question 6 0.0/8.0 points (graded) Rush-and-Cash's stock is currently traded at $170 per share. The stock price will either go up or go down by 10% in each of the next two years. The annual interest rate is 5%. Assume the stock pays no dividends the next two years. Bank XYZ issues a two-year European call option on the stock with the strike price $180. (b) Suppose the price goes down at Year 1. What is the price of the option? Price, Cid $ (c) What is the price of the option at Year 0? Price, CO $

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