Question: Please do not copy other Chegg answers, they are wrong. Thank you! 10.8. The current spot price of a stock is $21, the expected rate

Please do not copy other Chegg answers, they are wrong. Thank

Please do not copy other Chegg answers, they are wrong. Thank you!

10.8. The current spot price of a stock is $21, the expected rate of return of the stock is 11%, and the volatility is 12%. The risk-free rate is 5%. Compute the price of a derivative whose payoff in 5 months is In(S5/12) +32 where S5/12 is the stock price in 5 months. 10.8. The current spot price of a stock is $21, the expected rate of return of the stock is 11%, and the volatility is 12%. The risk-free rate is 5%. Compute the price of a derivative whose payoff in 5 months is In(S5/12) +32 where S5/12 is the stock price in 5 months

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