RWJ 7th Edition Solutions - Colby College

Financial calculators will only give you one IRR, even if there are multiple IRRs. Using trial and error, or a root solving calculator, the other IRR is –83.46%. ... If the stock price at expiration is $140, the payoff is: Payoff = 10(100)($140 – 110) Payoff = $30,000. If the stock price at expiration is $125, the payoff is: Payoff = 10(100 ... ................
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