Question
Consider a put option with the following characteristics: Underlying asset market price $2.83 Strike price $3.15 Years to expiration 0.70 Risk-free rate 4.40% Volatility 125.50%
Consider a put option with the following characteristics:
- Underlying asset market price $2.83
- Strike price $3.15
- Years to expiration 0.70
- Risk-free rate 4.40%
- Volatility 125.50%
What is the value of the put option? Please show all of the steps and answer the question to the closest cent. Use the Black-Scholes Model
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
7th Edition
1259919714, 978-1259919718
