Assume S = $48.35, K = 45, ? = 0.23, r = 0.04, T - t = 60 days, div = 0, and a jump probability = 0.005. What is the increase in the value of a call over a no-jump call?

A) $0.04
B) $0.03
C) $0.02
D) $0.01


B

Business

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