The price of united carbon stock is 200 the standard


Question 1: The price of United Carbon stock is $200. The standard deviation of company returns is 22.3 percent per year and the risk-free rate is 5 percent per year. Calculate the price of a one year call option on this stock that has a striking price of $180.

Question 2: Using the data from Problem 1, calculate the expected price on a United Carbon put with K = $180 and T = one year.

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Finance Basics: The price of united carbon stock is 200 the standard
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