Assume a Stock Price of S(0)= $83

question 12

Multiple Choice

Assume a stock price of S(0) = $83.00,r = 0.045,σ = 0.25,and dividend = 0.02.What is the price of a claim that pays S³? Use formula 20.29.

• A) $423,323
• B) $710,695
• C) $624,165
• D) $818,123

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