Question
A call option has a strike price of 70 in dollars, and a time to expiration of 0.7 in years. If the stock is trading
A call option has a strike price of 70 in dollars, and a time to expiration of 0.7 in years. If the stock is trading for 43 dollars, N(d1) = 0.5, N(d2) = 0.4, and the risk free rate is0.03, what is the value of the call option?
Formula: C=S*N(d1) - X*N(d2)*e^(-rt)
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Analysis for Financial Management
Authors: Robert c. Higgins
8th edition
73041807, 73041803, 978-0073041803
