Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you please show how to work out the problem in Excel. Suppose there is a stock that has a current price of $89.50. The

Can you please show how to work out the problem in Excel.

Suppose there is a stock that has a current price of $89.50. The risk free rate is 1%.

There is an option with a price of $8.67 and a strike price of $85. This option will expire in 4 months.

What is the implied volatility of this stock?

A. 21.56%
B. 23.46%
C. 25.66%
D. 29.83%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance A Contemporary Application Of Theory To Policy

Authors: David N Hyman

10th Edition

053875446X, 978-0538754460

More Books

Students also viewed these Finance questions

Question

How does an applicant apply?

Answered: 1 week ago