Question
A stock trades for $45 per share. A call option on that stock has a strike price of $42 and an expiration date 3 months
A stock trades for $45 per share. A call option on that stock has a strike price of $42 and an expiration date 3 months in the future. The volatility of the stock's returns is 31% and the risk-free rate is 2%. What is the Black and Scholes value of this option and what is the value of a put for this stock?
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
978-0078025587
