The current price of a stock is 22 in 1 year the price will, Ask an Expert

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The current price of a stock is $22. In 1 year, the price will be either $28 or $15. The annual risk-free rate is 6%. Find the price of a call option on the stock that has a strike price is of $25 and that expires in 1 year. (Hint: Use daily compounding.) Round your answer to the nearest cent. Assume 365-day year. Do not round your intermediate calculations.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92059744

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