Question
Problem 8 a) You are given the data below for pricing a European Put option.Solve for d 1 and d 2 . S 0 =
Problem 8
a) You are given the data below for pricing a European Put option.Solve for d1and d2.
S0 = $70.00 K = $69.00 r = 4.0%q = 0%T = 0.25 = 0.3
b) Now, you are given the following values: N(d1) = 0.5939 N(d2) = 0.5349
Calculate the price of the European Put Option based on the information in a) above.
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
