Joel Frankin is a portfotio manager respons bie tor derivitives. Frisnidin obierves an-American-style option and...
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Joel Frankin is a portfotio manager respons bie tor derivitives. Frisnidin obierves an-American-style option and a European-style option wikh the same strike price, expirabon, and andertying stock. Franklin beleves that the Europeon-style cotion will have a higher premium than the American-style option. Frankin is asked to value a oneryear European-stye call option for Abaco Ltd. commen stock, which iast traded at 345.00 . He has coliected the following information a. Calculate, using outicall parity and the information provided, the European.ityle cal optien valuei Do not round intermediate caloulations. Round your ahwer to the nearest cent
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