The current price of a stock is $20. In 1 year, the price will be either $28
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Question:
The current price of a stock is $20. In 1 year, the price will be either $28 or $15. The annual risk-free rate is 7%.
Find the price of a call option on the stock that has a strike price is of $25 and that expires in 1 year.
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
Posted Date: