A stock price is currently $50. It is known that at the end of two months it will be either $53 or

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A stock price is currently $50. It is known that at the end of two months it will be either $53 or
  • A stock price is currently $50. It is known that at the end of two months it will be either $53 or

  • Answers • 3 pages • 2020
  • A stock price is currently $50. It is known that at the end of two months it will be either $53 or $48. The risk-free interest rate is 10% per annum with continuous compounding. What is the value of a two-month European call option with a strikeprice of $49? Use no-arbitrage arguments.
    (0)
  • $5.49
  • + learn more