Question
Suppose that the current price of IBM is $127 per share. A call option on IBM is available with an exercise price of $125 that
Suppose that the current price of IBM is $127 per share. A call option on IBM is available with an exercise price of $125 that expires in 3 months. The current risk-free interest rate for 3 months is 5.5%. The standard deviation computed for IBM is 10%. Determine:
d1 =
d2=
Vc=
Vp=
The intrinsic value of the option today:
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The Future Of Pricing How Airline Ticket Pricing Has Inspired A Revolution
Authors: E. Boyd
1st Edition
0230600190,0230606903
