Question
A stock trades for $45 per share. A call option on that stock has a strike price of $53 and an expiration date three months
A stock trades for $45 per share. A call option on that stock has a strike price of $53 and an expiration date three months in the future. The volatility of the stock's returns is 46%, and the risk-free rate is 6%. What is the Black and Scholes value of this option?
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Principles Of Managerial Finance
Authors: Chad J. Zutter, Scott Smart
16th Edition
0136945880, 978-0136945888
