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A Call Option with a $50 Strike Price on Bavarian

question 3

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A call option with a $50 strike price on Bavarian Sausage stock will expire in one year.If you know that the risk free rate is 4%,that the stock currently sells at $47 and the put on the same stock has a value of $2.75,what is the price of the call?


Definitions:

Histogram

A graphical representation of the distribution of numerical data, where the data is divided into bins and the frequency of data in each bin is represented by the height of the bar.

Relative Frequency Histogram

A type of histogram where each bar's height represents the proportion of data that falls into each category, compared to the total data set.

Qualitative Data

Data that describes qualities or characteristics that cannot be measured with numbers, often involving categories or descriptions.

Quantitative Data

Numerical data that can be measured and quantified, enabling mathematical analysis and statistical operations.

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