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elf_fu elf_fu
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6 years ago
In a specific wager, Pat is paid $5.00 if the price of ABC Corp. is above $85.00. Currently, ABC Corp. price is $75.00, σ = 0.25, r = 0.04, div = 0 and the wager lasts 6 months. If the price is below $85.00, Pat must pay $5.00. What is the net value of Pat's wager?
A) -$2.49
B) +$2.49
C) -$1.50
D) +$1.50
Textbook 
Derivatives Markets

Derivatives Markets


Edition: 3rd
Author:
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phuongha2892phuongha2892
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6 years ago
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wrote...
#2
4 years ago
thank you
Anonymous
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#3
10 months ago
Help! The answer is missing an explanation...
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