A call option on Jupiter Motors stock with an exercise price of $80.00 and one-year expiration...

A call option on Jupiter Motors stock with an exercise price of $80.00 and one-year expiration is selling at $7.48. A put option on Jupiter stock with an exercise price of $80.00 and one-year expiration is selling at $9.12. If the risk-free rate is 3% and Jupiter pays no dividends, what should the stock price be? (Do not round intermediate calculations. Round your answer to 2 decimal places.; Use CONTINUOUS COMPOUNDING)

Stock price $

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You are attempting to value a call option with an exercise price of $140 and one year to expiration. The underlying stock pays no dividends, its current price is $140, and you believe it has a 50% chance of increasing to $160 and a 50% chance of decreasing to $120. The risk-free rate of interest is 10%. Based upon your assumptions, calculate your estimate of the the call option's value using the two-state stock price model. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Value of the call $

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jeff jeffy answered 1 week ago

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