Call option-calculation of d1
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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. The value of [d1] is (approximately)?
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The solution calculates d1 of a call option.
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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 ...
Purchase this Solution
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