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NO EXCEL PLEASE, NEED TO SHOW WORKINGS WITH FINANCE FORMULAS IN WORD OR HANDWRITTEN You are given the following information about the stock of Company
NO EXCEL PLEASE, NEED TO SHOW WORKINGS WITH FINANCE FORMULAS IN WORD OR HANDWRITTEN 
You are given the following information about the stock of Company ABC: Share price $82 risk free rate of interest is 4%, time to expiration is 6 months, annualised standard deviation is 0.6 and exercise price is $87. i. Calculate the appropriate call value of the stock according to the Black-Scholes option pricing formula (Show your workings in full) (4 marks) ii. Calculate an appropriate put premium. (Show your workings in full) (3 marks) [Total 7 marks] Step by Step Solution
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
13th edition
132743469, 978-0132743464
