Question
1. IBM stock currently sells for 64 dollars per share. The implied volatility equals 40.0. The risk-free rate of interest is 5.5 percent continuously compounded.
1. IBM stock currently sells for 64 dollars per share. The implied volatility equals 40.0. The risk-free rate of interest is 5.5 percent continuously compounded. What is the value of a call option with strike price 69 and maturity 9 months? Group of answer choices A). 7.98 B) 8.99 C) 12.94 D) 10.10
2.IBM stock currently sells for 64 dollars per share. The implied volatility equals 40.0. The risk-free rate of interest is 5.5 percent continuously compounded. What is the value of a put option with strike price 69 and maturity 9 months? Group of answer choices A)14.05 B)10.19 C)7.89 D) 8.94
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Global Finance And Development
Authors: David Hudson
1st Edition
0415436354, 978-0415436359
