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Trumbull's equity

 Trumbull's equity






Refer to Trumbull, Inc. What is the value of Trumbull's equity if it is viewed as an option? 
Trumbull, Inc. 
Trumbull, Inc., has total value (debt plus equity) of $5 million and $2 million face value of 1-year zero coupon debt. The volatility (?) of Trumbull's total value is 0.60, and the risk free rate is 5 percent. Assume that N(d1) = 0.9720 and N(d2) = 0.9050 





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19 Mar 2016

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    Trumbull's equity

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