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On March 18th at 2:42 PM, Google was priced at $1,064. A call option with an expiration date on April 24thhad a strike price of
On March 18th at 2:42 PM, Google was priced at $1,064. A call option with an expiration date on April 24thhad a strike price of $1,050. The bid price on the call option was $114.3. The Ask Price was $124. Implied volatility (Standard Deviation) was 0.8179. The risk-free rate on a one-month treasury according to treasury.gov is 0.12%. What would the Black-Scholes-Merton Model estimate this call option to be worth?
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
