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The current stock price of Verizon is $64 and the stock does not pay dividends over the next three months. The risk-free rate is 5%
The current stock price of Verizon is $64 and the stock does not pay dividends over the next three months. The risk-free rate is 5% a year. Consider a call option on this stock with a strike price of $55 and a maturity of 0.2 years from now. Using the Black-Scholes model, we have N(d1)=0.968 and N(dz)=0.961. The value of the call under the model is O $0.173 O $60.57 $9.62 O $6.61
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