Suppose S = 70, X = 65, r = 0.05, p = 0.6, Cu = 7.17, Cd = 1.22 and there is one period left in an American call's life. What will the option be worth?
a. 6.83
b. 0.00
c. 4.56
d. 5.00
e. none of the above
Answer: C
Suppose S = 70, X = 65, r = 0.05, p = 0.6, Cu = 7.17, Cd = 1.22 and there is one period left in an American call's life. What will the option be worth?
a. 6.83
b. 0.00
c. 4.56
d. 5.00
e. none of the above
Answer: C
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