A stock price is 100 now and will be either 108 or 93 in a
A stock price is 100 now and will be either 108 or 93 in a year. The RFR is 8% per annum with continuous compounding. Using the risk-neutral valuation, find the price of its one year European call option with a strike price of 102.
Now Priced at $10 (50% Discount)
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a stock price is 100 now and will be either 108 or 93 in a year the rfr is 8 per annum with continuous compounding
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