( derivative and risk management)

Critically analyze the following data of Batelco

Telecommunication Company . A company that is not

expected to pay dividend for a year, and find the value

of the call using Black Scholes call option pricing

formula for the month of January 140 option.

The spot price of the stock is 150 with a standard

deviation of 0.6 and a risk free rate of 10% and the

time to expiration is 5 months .