Assume that the actual underlying price is $25, its volatility is 30% and drift equal to 4%.
Question:
Assume that the actual underlying price is $25, its volatility is 30% and drift equal to 4%. Furthermore, the annual risk-free interest rate in the market is 3%. Price a European call option with maturity 6 months and strike price $25 according to the Black and Scholes model.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: