Question
Each share of Berkshire Hathaway (BRK-B) is currently trading at $500. If the risk-free rate is 10% and the expected volatility of BRK-B is 30%,
Each share of Berkshire Hathaway (BRK-B) is currently trading at $500. If the risk-free rate is 10% and the expected volatility of BRK-B is 30%, what is the Black-Scholes-Merton price of an at-the-money European put option on BRK-B with one year until expiration?
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Entrepreneurial Finance Strategy, Valuation, And Deal Structure
Authors: Janet Smith, Richard Smith, Richard Bliss
1st Edition
0804770913, 9780804770910
