BlackScholes An equity sells for 40 per share. The continuously compounded risk-free rate is 4 per cent.

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Black—Scholes An equity sells for €40 per share.

The continuously compounded risk-free rate is 4 per cent. The standard deviation of the return on the equity is 80 per cent. What is the value of a put option with a strike of €45 and a three-month expiration?

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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Question Posted: Jul 08, 2024 09:02 AM

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BlackScholes An equity sells for 40 per share. The continuously compounded risk-free rate is 4 per cent.

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Fundamentals Of Corporate Finance

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