What should be the issue price of that call option
Problem
YOUR BANK is thinking to issue an European Call Option of strike price $940.00 and one-year maturity on a two-year zero coupon bond of face value $1,000. What should be the issue price / offer price / premium of that Call Option?
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YOUR BANK is thinking to issue an European Call Option of strike price $940.00. What should be the issue price / offer price / premium of that Call Option?
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