Bb is considering the purchase of a 2-year call on the , Ask an Expert

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Bob is considering the purchase of a 2-year call on the ? corporation whose shares are now priced at 90. ? pays a midyear dividend of 3 per share each year. The continuously compounded risk free rate is 4%, and the volatility of ? is .32. Assuming the Black-Sholes formulas apply, determine the price of a 2-year 94-strike call on ?.

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Financial Management, Finance

Category:- Financial Management
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