Question
Blackwater limited common stock is currently trading at $50 per share. the value of the call option on the stock with an exercise price of
Blackwater limited common stock is currently trading at $50 per share. the value of the call option on the stock with an exercise price of $49 and an expiry of 6 months is $5.85. The effective annual-risk-free rate is 5%. What is the theoretical price of option on Blackwater's stock if the put has the same exercise price and time to expiry?
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Commodity Option Pricing A Practitioner's Guide
Authors: Iain J. Clark
1st Edition
1119944511, 978-1119944515
