Value of Call Option Assignment
February 18th, 2020
imagine that Google stock price will either rise by one third or fall by 25% over the next six months. Assume the 6 month risk free interest rate is 1%. Both the stock price and the exercise price are $530.
1. Calculate the value of the 6 month call option using the replicating portfolio method
2. Calculate the value of the 6 month call option using the risk neutral method. Get Finance homework help today