Question

Rebecca is interested in purchasing a share in SpaceY, a hot new startup. SpaceY has a...

Rebecca is interested in purchasing a share in SpaceY, a hot new startup. SpaceY has a debt of $98.00M maturing in 86 days. Current asset value is $120.76M and fluctuates by 42% per year. The risk-free rate is 6.44%. Assuming a 360-day year, use Black-Scholes formula, to compute the price of 1 share of the call. Space Y has 2 million shares outstanding

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