From an online quote system you know a 5-week european call, Ask an Expert

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From an online quote system, you know a 5-week European call option with a strike price of $40 sells at $7 / 8, whereas the stock sells at $37. Assume that the continuously compounded risk-free rate is 3% per year, and there are no dividends for the next five weeks. What is the market's assessment of the volatility (the implied volatility) of the stock?

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Financial Management, Finance

Category:- Financial Management
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