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Let S = $85, K =$80,r=8% (continuously compounded), T -0.5, and 8-0. Letu -1.3,0 -0.75, and n-1. Calculate the value of a Eur
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Answer #1

Answer:

From the given data,

Value of Call P=\DeltaS+B

\Delta=D=0.652406

B=-39.9601

S=85

P=0.652406*85+(-39.9601)

P=15.49441~15.494

option C is correct.

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