Question
Assume the following inputs for a call option: (1) current stock price is $32, (2) strike price is $37, (3) time to expiration is 6
Assume the following inputs for a call option: (1) current stock price is $32, (2) strike price is $37, (3) time to expiration is 6 months, (4) annualized risk-free rate is 6%, and (5) variance of stock return is 0.29. The data has been collected in the Microsoft Excel Online file below
https://drive.google.com/file/d/1mpefCWjeyhQ8pOVNF-EyrT9JvD-zG_Lk/view?usp=sharing
excel spreadsheet with additional information in the following google drives link above
Use the Black-Scholes model to find the price for the call option. Do not round intermediate calculations. Round your answer to the nearest cent.
$fill in the blank 2
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