Question: Using the information in Problem 19-2, determine the sensitivity of the call value to a change in inputs by recalculating the call value if a.

Using the information in Problem 19-2, determine the sensitivity of the call value to a change in inputs by recalculating the call value if

a. The interest rate doubles to 14 percent, but all other values remain the same

b. The standard deviation doubles to 0.8, but all other values remain the same

c. Which change causes the greatest change in the value of the call? What can you infer from this?

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