Multiple Choice
Lechno,Inc.issues compensation options with the following terms.Strike = $65,price = $63.50,σ = 0.22,r = 0.045,div = 0.015.What is the value of the option if it will be repriced at $40? Assume 10 years to expiration.
A) $18.64
B) $22.22
C) $24.32
D) $26.84
Correct Answer:
Verified
Correct Answer:
Verified
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