Assume the following: LN(S) and LN(Q) have a correlation coefficient of 0.40, S(0 ) = 60, Q(0 ) = 60, r = 0.05, ?s = 0.30 ?Q = 0.25, and dividend = 0. Using formula 20.39, what is the price of a claim that pays?

A) $243.96
B) $322.96
C) $479.96
D) $532.96


C

Business

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