Multiple Choice
Suppose S = $52.50,K = $50,σ = 0.25,r = 0.04 and div = 0.01.What is the price of a gap option with 156 days until expiration and K₁ = $32.00?
A) $14.00
B) $15.00
C) $16.00
D) $17.00
Correct Answer:
Verified
Correct Answer:
Verified
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