Question: What should a call option be worth if it has 6 months to expiration, risk free rate is 3, has strike price of $50, and

What should a call option be worth if it has 6 months to expiration, risk free rate is 3, has strike price of $50, and its underlying stock is trading currently at $45 with equal chances of getting to $60 and $30 in the next 6 months

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Calculation can be done as follows Given Asset price 445 Strike price 50 Expected st... View full answer

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