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. Assume the following for a stock and a call option written on the stock. EXERCISE PRICE = $30 CURRENT STOCK PRICE = $30 Standard

. Assume the following for a stock and a call option written on the stock.

EXERCISE PRICE = $30

CURRENT STOCK PRICE = $30

Standard Deviation = .35 (square it to find variance)

TIME TO EXPIRATION = 3 MONTHS = .25

RISK FREE RATE = 4%

Use the Black Scholes procedure to determine the value of the call option.

Use the Black Scholes procedure to determine the value of the Put option

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