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Business, 20.04.2020 20:37 thicklooney

One of Modular Products (MP) customers would like to obtain a 6-month option to purchase 500,000 tables for $119 each. These tables currently sell for $110 each. Assume u equals 1.0994 and d equals .9096. What price should MP charge for this option if the annual risk-free rate is 3.2 percent
Group of answer choices
a. $338,400
b. $421,900
c. $598,100
d. $479,900
e. $533,600

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Answers: 3

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