Question
Problem 4: (5 points) SleazeCo. stock is currently valued at $40 per share. The volatility of SleazeCo. equity is 30 percent per year and the
Problem 4: (5 points) SleazeCo. stock is currently valued at $40 per share. The volatility of SleazeCo. equity is 30 percent per year and the continuously compound risk-free rate is 1 percent per year. What is the Black/Scholes value of a European put option written on SleazeCo stock that has an exercise price of $35 and expires in a half a year (T = .5)? Put value = _______________________.
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Financial Management Principles And Applications
Authors: Sheridan Titman
9th Edition
0655705457, 9780655705451
