Question
Assume the Market Price of a Put option is $4.38. The Black-Scholes-Merton Price you computed is $4.57. Your standard deviation input was 35%. Consider 4
Assume the Market Price of a Put option is $4.38. The Black-Scholes-Merton Price you computed is $4.57. Your standard deviation input was 35%. Consider 4 other possible standard deviations If you are trying to determine the Implied Volatility, which of these 4 should you try ?? provide a brief explanation.
(AA) 15 % (BB) 29 % (CC) 41% (DD) 56%
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Financial Markets And Institutions
Authors: Jeff Madura
9th Edition
1439038848, 978-1439038840
