Multiple Choice
Cola Company options have an exercise price of $45 and expire in 156 days. The current price of Cola Company stock is $44.375. The (annually compounded) risk-free rate is 7 percent per year and the standard deviation of Cola Company's stock returns is 0.31. Calculate d2.
A) −0.02766
B) +0.02766
C) +0.2027
D) −0.2027
Correct Answer:
Verified
Correct Answer:
Verified
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