A once year call option allows you to receibe a share of, Ask an Expert

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A once year call option allows you to receibe a share of stock B in exchange for 2.5 shares of stock A. It costs 2.50. Find the premium of a 1 year call option to receive 1 share of stock A in exchange for 0.4 shares of stock B. The current price of stock A is 30 with a continuous dividend of 2%. The current price of stock B is 75 with a continuous dividend of 5%.

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Financial Management, Finance

Category:- Financial Management
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