Question
Calculate the option price using the following information: Option type-European put Time to expiration-18 months Strike price-2500 Underlying type-Index Current underlying index-2700 Underlying dividend yield-2%
Calculate the option price using the following information:
Option type-European put
Time to expiration-18 months
Strike price-2500
Underlying type-Index
Current underlying index-2700
Underlying dividend yield-2%
Underlying volatility-20%
Risk-free rate-3%
Pricing model- Black-Scholes formula
a.145.99
b.213.90
c.230.77
d.274.32
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Core Concepts Of Accounting Information Systems
Authors: Mark G. Simkin, Carolyn A. Strand Norman, Scott Paquette
1st Canadian Edition
9781118738108
