The current spot price of a stock is 21 the expected rate, Ask an Expert

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The current spot price of a stock is $21, the expected rate of return of the stock is 11%, and the volatility is 12%. The risk-free rate is 5%. Compute the price of a derivative whose payoff in 5 months is ln(S5/12) + 32, where S5/12 is the stock price in 5 months.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91789579

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