Question
1. (10 points) Using the Black/Scholes Option Pricing Model, calculate the value of the call option given: S= 74; X=70; T=6 months; =.50; Rf =10%
1. (10 points) Using the Black/Scholes Option Pricing Model, calculate the value of the call option given: S= 74; X=70; T=6 months; =.50; Rf =10%
(3 points) If volatility were to decrease, the value of the call would ___________?
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Authors: Jack Jones
1st Edition
1545269920, 978-1545269923
