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Business, 24.08.2021 01:50 eneidabenitez14

The stock price of Ajax Inc. is currently $105. The stock price a year from now will be either $130 or $90 with equal probabilities. The interest rate at which investors can borrow is 10%. Using the binomial OPM, the value of a call option with an exercise price of $110 and an expiration date one year from now should be worth today. a. $11.59
b. $15.00
c. $20.00
d. $40.00

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The stock price of Ajax Inc. is currently $105. The stock price a year from now will be either $130...

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