You would like to be holding a covered call position on the, Ask an Expert

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You would like to be holding a covered call position on the stock XYZ. The stock XYZ is currently selling for $120. Over the next year, stock price will either increase by10% or decrease by 10%. The exercise price of the call option is $125.The risk free interest rate is 3% per year.

What is the price of the call option?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92338836

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