A European call option has an exercise price of $60 and matures in four months. The current stock price is $68, and the risk-free rate is 5.8 percent per year, compounded continuously. What is the price of the European call if the standard deviation of the stock is 0 percent per year?

European call price

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A stock is currently priced at $65. A European call option with an expiration of one year has an exercise price of $70. The risk-free rate is 4 percent per year, compounded continuously, and the standard deviation of the stocks return is infinitely large. What is the price of the European call option?

Price of the European call option

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A stock with a current price of $71 has a call option available with a strike price of $75. The stock will move up by a factor of .88 or down by a factor of .73 each period for the next two periods and the risk-free rate is 1.8 percent. What is the price of the call option today?

Price of the call option

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