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solve in 50 mins i will give thumb up. Q8)(1%) Suppose that on 27 October 2022, Wall Street Journal in New York presents the following
solve in 50 mins i will give thumb up.
Q8)(1\%) Suppose that on 27 October 2022, Wall Street Journal in New York presents the following price for 27 March 2023 call options on Microsoft stock (in $ USA) while the annual interest rate is 4% per year. On this date (27 October 2022) the Microsoft stock was trading at $81.625. Suppose we decide that the volatility of the market is 30%. Should you buy the call option as the European one with strike price $80 ? Justify yourStep by Step Solution
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