A manufacturer has entered into american call option, Ask an Expert

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A manufacturer has entered into American call option contract that allows it to buy 30,000 barrels of crude oil in three month at price of $185 per barrel. Crude oil is currently selling on the wholesale market at $165 per barrel and has a standard deviation of 46%. The risk-free rate is 6% per year. What is the value of this option?

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Financial Management, Finance

Category:- Financial Management
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