Calculate the price of a call option on Mitch’s stock that expires in one year’s time, with an exercise price of £100, and show all your workings, using.
Mitch Plc, a UK-based smart phone manufacturer, is considering adding a new model of smart phones to its current production line. The success of the new model depends on general market conditions. Mitch’s current share price is £100. If the conditions are good, the revenues from the project are estimated to be £30 million a […]