Quiz Ch 21 – Incorporating Present Value in Black-Scholes Call Formula

Principles of Corporate Finance

Brealey, Myers, and Allen

13th Edition

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What is the reason for including the present value of the exercise price in the Black-Scholes call formula instead of using the exercise price as is?

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  • Search Terms: a) a accounts all and are black-scholes call dividend. d) does early. c) exercise exercised finance for formula formula? future in merely money. b) must not of option options potential present price put rarely the time use uses value value. why
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