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.

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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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