Neas-Seminars

Corpfin Mod 21: Homework student comments


http://33771.hs2.instantasp.net/Topic3112.aspx

By NEAS - 7/7/2005 7:46:06 AM


[Below are student comments on a similar homework assignment used in past years.]
By NEAS - 8/23/2018 12:54:00 PM

e_garland - 2/17/2008 10:24:51 PM

I interpreted B as the price that the option is worth, which would be the price of the stock minus the strike price ($7)

[NEAS: Correct. At maturity, the final stock price is known. If it is more than the strike price, the value of the call option is the stock price minus the strike price.]