Question
A stock index is trading at 1,544. Consider a call option, with r = 1.00% , q = 2.00% , volatility at 30.00%, the strike
A stock index is trading at 1,544. Consider a call option, with r = 1.00% , q = 2.00% , volatility at 30.00%, the strike price is 1,700 and time to expiry is 1 year. What is the probability that the option will pay off? (Just calculate the number, you dont have to derive the expression.)
This is all the info I got.
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Foundations Of Finance
Authors: Arthur J Keown, John D Martin, J William Petty
7th Edition
0133370356, 9780133370355
