A call option on IBM with an exercise price of $90 will expire in 30 days. IBM stock is currentlt selling for $93 per share.
A call option on IBM with an exercise price of $90 will expire in 30 days. IBM stock is currentlt selling for $93 per share. The volatility of IBM stock is 62%. The risk free rate is 5%. The Black-Scoles formula will value this IBM call at____?
A.
$3.00
B.
$8.29
C.
$0.0
D.
$4.81
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Authors: Don Cyr, Alfred Kahl, William Rentz, R. Moyer
1st Edition
017616992X, 978-0176169923
