Question
suppose you are given the following information concerning options written on the non-dividend paying shares of Iskuhi Enterprises: Share price=$83 Exercise price=$80 Risk-free rate=6% per
suppose you are given the following information concerning options written on the non-dividend paying shares of Iskuhi Enterprises:
Share price=$83
Exercise price=$80
Risk-free rate=6% per year, compounded continuously
Maturity=6 months
Standard deviation=47% per year
the time value of a European put option on Iskuhi Enterprises shares would be?
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
