Question: Q6. Based on Black and Scholes model, the fair value of the above call option should be $....... Use the following information to answer question

 Q6. Based on Black and Scholes model, the fair value of

Q6. Based on Black and Scholes model, the fair value of the above call option should be $....... Use the following information to answer question 7-9. Assume the latest EPS was $1.50 going down by 8% each year for the following 2 years and then going up by 15% each year for the following three year Thereafter the annual growth rate is constant at the annual growth rate of GDP of 5%. The beta is 1.50. the risk-free rate is 3%. The market risk premium is 6% Q7. The PV of EPS of the year five is Q8. The price as of the year five (P5) is $ Q9. The price as of today (PO) is $

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