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Business, 03.05.2021 14:50 rachel2735

You have a 1-year call option for which the underlying asset is one barrel of oil. The exercise price is $45 per barrel. Suppose that investors are convinced that the price of oil one year from now will be either $30 or $55 per barrel. Annual risk free rate is 5% and the current oil price per barrel is $40. What is the call option price

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You have a 1-year call option for which the underlying asset is one barrel of oil. The exercise pric...
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