Question
Given the following information answer questions 22 and 23: The current stock price of Tesla is $705, and the stock does not pay dividends. The
Given the following information answer questions 22 and 23:
The current stock price of Tesla is $705, and the stock does not pay dividends. The instantaneous risk-free rate of return is 1.5%, and the standard deviation of Teslas stock is 7.6%. The call and put options on this stock have an exercise price of $740 and an expiration date one year from now.
22) Using the Black-Scholes model, the call option should be worth ________ today.
$11.81
$13.26
$10.46
$12.54
23) Using the Black-Scholes model, the put option should be worth ________ today.
$35.80
$32.55
$31.94
$34.21
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