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Question
Cola Company has call options on its common stock traded in the market. The options have an exercise price of $45 and expire in 156 days. The current price of the Cola stock is $44.375. The risk-free rate is $7% per year and the standard deviation of the stock returns is 0.31.
Calculate the value of d2: (approximately)
A. -0.02766
B. +0.02766
C. +0.2027
D. -0.2027
Answer
This answer is hidden. It contains 71 characters.
Related questions
Q:
Suppose VS's stock price is currently $20. In the next six months it will either fall to $10 or rise to $30. What is the current value of a put option with an exercise price of $15? The six-month risk-free interest rate is 5% (periodic rate).
A. $5.00
B. $2.14
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Q:
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