Question
Let's assume that we have a stock that is priced at $47 a share. There is a call that expires in 5 months that has
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Let's assume that we have a stock that is priced at $47 a share. There is a call that expires in 5 months that has a strike price of $44.50. The stock has a standard deviation of .35 and the risk-free rate is 2.25%.
Let's find the price of this call using the BSOPM.
What is the value for d1?
A. .3963
B. .2259
C. .7826
D. .5916
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
