Question
Required: Use the Black-Scholes formula to find the value of a call option based on the following inputs. Refer to Cumulative normal distribution Table. (Do
Required:
Use the Black-Scholes formula to find the value of a call option based on the following inputs. Refer to Cumulative normal distribution Table. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
| Stock price | $ 65 |
|---|---|
| Exercise price | $ 71 |
| Interest rate | 8% |
| Dividend yield | 4% |
| Time to expiration | 0.5 |
| Standard deviation of stocks returns | 28% |
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The Future For Investors
Authors: Jeremy Siegel
1st Edition
140008198X, 978-1400081981
