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Exercise price of the option

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Reference no: EM132544286

Assume the current price of a stock is R43 and the volatility is 0.2. Assume the stock is not expected to pay dividends during the next 6 months. Assume the risk-free interest rate is 10% pa. The Black-Scholes model suggests that the price of a 6 month European call option on the stock where the exercise price of the option is R40 is?

Reference no: EM132544286

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