What is the current value of a 1-year call option with an


Westford stock is currently selling for $60.00 a share but is expected to either decrease to $54 or increase to $66 a share over the next year. The risk-free rate is 3.5 percent. What is the current value of a 1-year call option with an exercise price of $63?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the current value of a 1-year call option with an
Reference No:- TGS02840098

Now Priced at $10 (50% Discount)

Recommended (96%)

Rated (4.8/5)