Question
A stock trades for $45 per share. A call option on that stock has a strike price of $54 and an expiration date three months
A stock trades for $45 per share. A call option on that stock has a strike price of $54 and an expiration date three months in the future. The volatility of the stock's returns is 31%, and the risk-free rate is 6%. What is the Black and Scholes value of this option?
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Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen
13th Edition
0073382388, 978-0073382388
