The current spot price of a widget share is 48 one year, Ask an Expert

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The current spot price of a Widget share is $48. One year from now the stock price can be either high ($50 per share) or low ($46 per share). The annual risk-free interest rate is 10%.

What is the price of a call option on 100 Widget shares, with an exercise price of $47 and expiration one year from now?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91941265

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