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Question #5 Current market price: $95 Strike/exercise price: $100 Risk-free rate (rf): 5% Time (in years): .25 Standard deviation: 25% The standard deviation is the

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Question #5 Current market price: $95 Strike/exercise price: $100 Risk-free rate (rf): 5% Time (in years): .25 Standard deviation: 25% The standard deviation is the risk associate with an option. The greater the standard deviation, the greater the risk of an option. Use the Black-Scholes Option Pricing Model and calculate the price of this option

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