You wish to buy a 3-month call option on XYZ Inc. stock with X=$100. The risk-free interest

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You wish to buy a 3-month call option on XYZ Inc. stock with X=$100. The risk-free interest rate is 5%, the standard deviation of the stock is 30%, and N(d2) is 0.2676.

What would be the current stock price of XYZ Inc.?

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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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Posted Date: May 02, 2023 06:38 AM

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You wish to buy a 3-month call option on XYZ Inc. stock with X=$100. The risk-free interest

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Expert Answer:

To solve for the current stock price of XYZ Inc we need to use the BlackScholes formula which gives ... View the full answer

Finance Applications and Theory

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