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The Black Hole Inc. has a call option written on its common stock shares. Here's what's known: The Black Hole Inc.'s today's stock price, per
The Black Hole Inc. has a call option written on its common stock shares. Here's what's known:
The Black Hole Inc.'s today's stock price, per share ($) | 130 |
Current annual risk-free rate | 4% |
Time until the option's expiration, in years | 0.67 |
Standard deviation of The Black Hole Inc.'s annual stock returns | 0.78 |
Strike price of The Black Hole Inc.'s call option ($) | 110 |
According to the Black-Scholes formula, today's value of this call option is _____. As part of your calculations, N(d1) equals _____ and d2 equals _____.
the number you got using the Black-Scholes formula is greater than the amount that Google.finance.com shows this call option can be purchased for today. This means that this call option is____.
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