Question
A stock trades for $46 per share. A call option on that stock has a strike price of $51 and an expiration date 12 months
A stock trades for $46 per share. A call option on that stock has a strike price of $51 and an expiration date 12 months in the future. The volatility of the stock's returns is 42%, and the risk-free rate is 5%. What is the Black and Scholes value of this option?
The Black and Scholes value of this call option is $:
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Financial Management Theory And Practice
Authors: Prasanna Chandra
8th Edition
0071078401, 978-0071078405
