Go to www.cboe.com, click on the Trading Tools tab, then the Option Calculator link. A stock is
Question:
Go to www.cboe.com, click on the “Trading Tools” tab, then the “Option Calculator” link. A stock is currently priced at $93 per share, and its return has a standard deviation of 48 percent per year. Options are available with an exercise price of $90, and the risk-free rate is 5.2 percent per year, compounded continuously. What is the price of the call and the put that expire next month? What are the deltas? How do your answers change for an exercise price of $95?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
Question Posted: