Xyzrsquos stock currently sells for 100 over the 3 months, Ask an Expert

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XYZ’s stock currently sells for $100. Over the 3 months, the stock price will either increase by 10% or decrease by 10%. The 3 month T-Bill rate is 5.0% (annual rate). Suppose that the 3 month option price of XYZ is at 105. What will be the desired call option premium be traded?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92051202

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