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Stacks Underflow Ltd. stock has a volatility of 30% and a current stock price of $26 per share. Stacks Underflow Ltd. pays no dividends. The
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Stacks Underflow Ltd. stock has a volatility of 30% and a current stock price of $26 per share. Stacks Underflow Ltd. pays no dividends. The risk-free interest rate is 2%. The Black-Scholes value of a one-year, at-the-money call option on Stacks Underflow Ltd. stock is closest to:
A. $3.33
B. $9.50
C. $4.75
D. $1.45
Stacks Underflow Ltd. stock has a volatility of 30% and a current stock price of $26 per share. Stacks Underflow Ltd. pays no dividends. The risk-free interest rate is 2%. The Black-Scholes value of a one-year, at-the-money call option on Stacks Underflow Ltd. stock is closest to:
| A. | $3.33 | |
| B. | $9.50 | |
| C. | $4.75 | |
| D. | $1.45 |
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