Question
Let S = $74, s = 26%, r = 7.5%, and d = 1.5% (continuously compounded). Compute the Black-Scholes price for a $75-strike European call
Let S = $74, s = 26%, r = 7.5%, and d = 1.5% (continuously compounded). Compute the Black-Scholes price for a $75-strike European call option with 9 months until expiration.
a. $0.00
b.$7.66
c. $5.67
d. $5.38
e. $4.38
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
4th International Edition
013284298X, 9780132842983
