The annual risk-free rate is 6 find the price of a call


The current price of a stock is $15. In 6 months, the price will be either $18 or $13.

The annual risk-free rate is 6%. Find the price of a call option on the stock that has a strike price of $14 and that expires in 6 months. ( Hint: Use daily compounding.)

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Financial Management: The annual risk-free rate is 6 find the price of a call
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