Suppose the annually compounded risk-free rate is 5 for all


Suppose the annually compounded risk-free rate is 5% for all maturities. A non-dividend-paying common stock is trading at $100. Suppose you are considering a European call option with a strike price of $110.

What is the time to maturity of this option where the boundary condition begins to be non-zero?

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Financial Management: Suppose the annually compounded risk-free rate is 5 for all
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