The price of a stock is currently $ 3 7 . Over the next half year, the

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Question:

The price of a stock is currently $

37 .

Over the next half year, the price is anticipated to rise to $

42

or decline to $

36 .

The upside has a

60 %

probability of occurring. The risk

-

free interest rate is

5 %

.

. .

What is the price of a six month call option with an exercise price of $

38 ?

Posted Date: May 18, 2024 12:21 PM

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The price of a stock is currently $ 3 7 . Over the next half year, the

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