Question
If the risk-free rate was currently 2 per cent and the share return volatility (variance) of Hill's ordinary shares was 5.00 per cent per annum,
If the risk-free rate was currently 2 per cent and the share return volatility (variance) of Hill's ordinary shares was 5.00 per cent per annum, what would be the traded price of the Hill put option?
Exercise Price of $30
Share Price of $25
Option expiry 6 months
- (PLEASE USE Black-Scholes-Merton (BSM) Option Pricing Model) please provide a detail answer :) thank you so much
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
