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Question
Mary wagers to pay one share of stock to Matt if the price at expiration in 1 year is above $75.00. Assume S(0) = 60.00, σ = 0.15, r = 0.04, and dividend rate = 0.01. What is the value of Mary's bet?A) $6.55
B) $7.55
C) $8.55
D) $9.55
Answer
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Related questions
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