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    Exam 9: Derivatives: Futures, Options, and Swaps
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    What Would Be the Value of an Option on a Stock
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What Would Be the Value of an Option on a Stock

Question 20

Question 20

Essay

What would be the value of an option on a stock that sells at a fixed price with a standard deviation of zero? Explain.

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Absent intrinsic value in the option, a ...

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