The price of a one-year at the money call option is 7.07. The underlying asset is...

The price of a one-year at the money call option is 7.07. The underlying asset is a stock that pays dividends at a rate of 4%. The stock’s volatility is 30% and the current risk-free interest rate is 10%. The call’s Delta is equal to .611831. Determine the current price of the stock.

Expert Solution

We see that the current price of the stock is given as equal to 50

jeff jeffy answered 1 year ago

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