Put together a Black-Scholes option calculator in Excel to answer the following. (a) What is the call-option
Question:
(a) What is the call-option value with S0 = $40, K = $40, r = 6%, T = 14 months, and volatility = 40%?
(b) What is the put-option value with S0 = $50, K = $55, r = 6%,T = 18 months, and volatility = 20%?
(c) What is the put-option value with S0 = $38, K = $40, r = 6%, T = 3 months, and volatility = 60%?
(d) What is the call-option value with S0 = $100, K = $95, r = 8%, T = 3 years, and volatility = 40%?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a Define the option parameters for this call option S 0 ...View the full answer
Answered By
Ashish Bhalla
I have 12 years work experience as Professor for Accounting, Finance and Business related subjects also working as Online Tutor from last 8 years with highly decentralized organizations. I had obtained a B.Com, M.Com, MBA (Finance & Marketing). My research interest areas are Banking Problem & Investment Management. I am highly articulate and effective communicator with excellent team-building and interpersonal skills; work well with individuals at all levels.
17+ Reviews
46+ Question Solved
Related Book For 
Question Posted:
