Question
Excel Online Structured Activity: Black-Scholes Model Assume the following inputs for a call option: (1) current stock price is $29, (2) strike price is $36,
Excel Online Structured Activity: Black-Scholes Model
Assume the following inputs for a call option: (1) current stock price is $29, (2) strike price is $36, (3) time to expiration is 5 months, (4) annualized risk-free rate is 4%, and (5) variance of stock return is 0.31. Use the Black-Scholes model to find the price for the call option. Do not round intermediate calculations. Round your answer to the nearest cent.
you guys have been telling me this below as an answer but can you do it for me, please
to calculate the call option price using the Black-Scholes Model, first, determine the values of d1 and d2 using the provided formulas and input values. Then, substitute these values into the call option price formula along with the given inputs. Utilize a financial calculator or software such as Excel to compute the precise call option price, rounding the final result to the nearest cent.
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