Question
a stock is now trading at RM40.00. The stock has a price volatility (standard deviation) of 30%. Calculate the fair value of a call option
a stock is now trading at RM40.00. The stock has a price volatility (standard deviation) of 30%.
Calculate the fair value of a call option using BSOPM based on the following information:
Maturity = 180 days
Interest rate (rf) = 12%
Exercise price = RM35.00
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How To Understand Business Finance
Authors: Bob Cinnamon, Brian Helweg-Larsen
2nd Edition
0749460202, 978-0749460204
