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elf_fu elf_fu
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We will assume that Nathans, Inc. has 3-year zero-coupon debt outstanding, which will pay $200 at maturity. The assets are valued at $175, σ = 0.20, r = 0.04, and the company does not pay a dividend. Using a Black-Scholes model, what is the value of the equity?
A) $23.05
B) $43.05
C) $63.05
D) $83.05
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Derivatives Markets

Derivatives Markets


Edition: 3rd
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phuongha2892phuongha2892
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elf_fu Author
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6 years ago
Thank you phuongha2892
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