Data s0 100 x 110 1 r 11 the two possibilities for st, Ask an Expert

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Data: S0 = 100; X = 110; 1 + r = 1.1. The two possibilities for ST are 150 and 80.

Calculate the value of a call option on the stock with an exercise price of 110. (Do not use continuous compounding to calculate the present value of X in this example, because the interest rate is quoted as an effective per period rate)

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