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Dante52 Dante52
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4 months ago
Montreal Smoked Meat Ltd. (MSM) shares are currently selling for $55 per share. The 2-year put option on MSM shares has the following characteristics: strike price = $50, price = $0.25
Given that the risk-free rate is 2%, what is the price of a 2-year call option on MSM shares with an exercise price of $50?

▸ $5.25

▸ $7.19

▸ $0

▸ $6.23
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
Author:
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ricyoungricyoung
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4 months ago
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