Question: Urgent 10 mins only Problem 3 FPA, Inc. has a current stock price of $42.40 per share. The company will pay an annual dividend yield

Urgent 10 mins only

Urgent 10 mins only Problem 3 FPA, Inc. has a current stock

Problem 3 FPA, Inc. has a current stock price of $42.40 per share. The company will pay an annual dividend yield of 6% on its stock. If FPA's returns have a standard deviation of 25% and the risk-free rate is 4%, what is the value of a one-year call option on the stock with a strike price of $40

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