Question: Problem 4 = d V21 Note that N(d) 1+ Use this to derive the value of a call option when the stock price is at

Problem 4 = d V21 Note that N(d) 1+ Use this

Problem 4 = d V21 Note that N(d) 1+ Use this to derive the value of a call option when the stock price is at the present value of the strike price; that is S = Ke-rT. Specifically, show that C ~0.4SOVT. Also, show that A] +0.20VT for the call option. Consider zero dividends. Problem 4 = d V21 Note that N(d) 1+ Use this to derive the value of a call option when the stock price is at the present value of the strike price; that is S = Ke-rT. Specifically, show that C ~0.4SOVT. Also, show that A] +0.20VT for the call option. Consider zero dividends

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