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ABL shares are currently trading at a price of $33, while HHT shares are trading at a price of $48.74. The risk-free rate is 1.22%
ABL shares are currently trading at a price of $33, while HHT shares are trading at a price of $48.74. The risk-free rate is 1.22% per year. Using the information above, perform each of the following tasks:
Find the Black-Scholes price of the call on ABL with a strike price of $34.59 if there is 6 months until the call expires and the annual standard deviation of the stock price is 20%.
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