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A call option matures in 6 months. the underlying...

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A call option matures in 6 months. the underlying stock price is $85 and the stock's return has a standard deviation of 20% per year. the risk-free rate is 4% per year, compounded continously. if the exercise price is $0, what is the price of the call option.

 

Paper#2758 | Written in 18-Jul-2015

Price : $25
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