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Business, 27.07.2021 18:20 IntellTanito

IBM stock currently sells for 49 dollars per share. Over 12 month(s) the price will either go up by 11.5 percent or down by -7.0 percent. The risk-free rate of interest is 4.5 percent continuously compounded. If the stock goes up, what is the payoff of a call option with a strike price of 50?

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IBM stock currently sells for 49 dollars per share. Over 12 month(s) the price will either go up by...
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