Same as before, except we will use a fifty-period model to evaluate it in order to increase
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Same as before, except we will use a fifty-period model to evaluate it in order to increase accuracy. At the close of trading on October 11, 2013, the stock price of Facebook (FB) was $49.11, the standard deviation of daily returns is 74.73%, the yield on a six-month U.S. Treasury Bill was 0.12%, the exercise price of an March 45 call on Facebook was $45.00, the exercise price of an March 45 put on Facebook was $45.00, and the time to maturity for both March 22, 2014 maturity options was 0.4472 years. Assume that Facebook pays certain, riskfree $1.00 dividends on the periods show below. What is the price of a March 45 call and a March 45 put on Facebook?
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