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Cyril Is Purchasing a Down-And-In Cash Call

Question 6

Multiple Choice

Cyril is purchasing a down-and-in cash call.H = $45.00,S = $38.24,K = $35,σ = 0.33,r = 0.05,div = 0 and it expires in 140 days.What is the value of the option if the payment is $1.00?


A) $0.80
B) $1.80
C) $2.80
D) $3.80

Correct Answer:

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