Intro

The current price of a non$-$dividend$-$paying stock is $$117$ and the annual standard deviation of the rate of return on the stock is $36\%.$ A European put option on the stock has a strike price of $$120$ and expires in $0\mathrm{.}25$ years. The risk$-$free rate is $3\%($continuously compounded$).$

Attempt $1/50$ for $10$ pts$.$

Part $1$

What is the value of N$(-$d$1)$ in the Black$-$Scholes formula?

$2+$ decimals

Attempt $1/50$ for $10$ pts$.$

Part $2$

What is the value of N$(-$d$2)?$

$2+$ decimals

Attempt $1/50$ for $10$ pts$.$

Part $3$

What should be the price $($premium$)$ of the put option?