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Assume Nifty is currently at 4500. If the risk free rate is 8% p.a and continuous dividend yieldon Nifty is. 3% p.a . What would

Assume Nifty is currently at 4500. If the risk free rate is 8% p.a and continuous dividend yieldon Nifty is. 3% p.a . What would the value of 3 month call option with exercise price of 4600be? Volatility of Nifty is 25% p.a. One nifty point is equal to Re 1 . ( Use Black ScholesModel)

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SOLUTION To calculate the value of a 3month call option on Nifty with an exercise price of 4600 we can use the BlackScholes model The BlackScholes model is a widely used mathematical model for pricing ... blur-text-image

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