Question
A call option has a strike price of $29, and a time to expiration of 0.4 in years. If the stock is trading for $34,
A call option has a strike price of $29, and a time to expiration of 0.4 in years. If the stock is trading for $34, N(d1) = 0.53, N(d2) = 0.42, and the risk free rate is 2.45%.
What is the value of the call option?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Given the following values S 34 stock price Nd1 053 Nd2 042 X 29 strike pric...
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Step: 3
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
