Question
In: Finance
suppose ABC's stock price is $25. In the next six months it will either fal to...
suppose ABC's stock price is $25. In the next six months it will either fal to $15 or it will rise $40. What is the current value of a six month call option with an exercise price of $20? The six month risk free interest rate is 5% (periodic rate). us the risk neutral valuation method
A: $13.10
B: $20
C: $8.57
D: $21.33
E: $9.52
Solutions
Expert Solution
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answer : c :
8.57
jeff jeffy answered 2 years agoRelated Solutions
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