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Price an option with the following information and please show work to use for other problem, thank you. Option European call Time to expiration 4
Price an option with the following information and please show work to use for other problem, thank you.
| Option | European call |
| Time to expiration | 4 months |
| Strike price | $30 |
| Underlying stock price | $32 |
| Underlying stock dividend | $1 in 2 months |
| Volatility of stock | 40% |
| Risk-free rate (per annum) | 6% |
| Pricing method | Black-Scholes formula |
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Personal Finance Version 3.1
Authors: Rachel S. Siegel
3rd Edition
1453334807, 978-1453334805
