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(Pricing a call) The stock price of ABC Corporation is currently S=$50 . What is the price of a European call option which expires in

(Pricing a call) The stock price of ABC Corporation is currently

S=$50

. What is the price of a European call option which expires in 2 months and which has an exercise price of

$60

? Assume that the yearly interest rate is

5.5%

and that the monthly volatility of the stock prices is

7.8%

.

image text in transcribed
(Pricing a call) The stock price of ABC Corporation is currently S=$50. What is the price of a European call option which expires in 2 months and which has an exercise price of $60 ? Assume that the yearly interest rate is 5.5% and that the monthly volatility of the stock prices is 7.8%

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