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Question 5: You are given the following information: stock price is $33, strike price is $30, volatility is 25% (annual), risk free interest rate is
Question 5: You are given the following information: stock price is $33, strike price is $30, volatility is 25% (annual), risk free interest rate is 8% (annual), dividend yield is 0%. T is 180 days. Calculate the following: 5) Martiet maken van minulos on to share it the stock price went up to $34. Asum a) European Call Option Price b) Market maker's 1-day gain/loss on 10 shares if the stock price went up to $34. Assume market maker is short call options. Assume C1 = 5.67
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