Question
The options on the stock of the Peter have the following input values: Stock price = RM55 Strike price = RM52 Risk-free rate = 0.10
The options on the stock of the Peter have the following input values:
Stock price = RM55
Strike price = RM52
Risk-free rate = 0.10
Standard deviation = 0.33
Time to maturity = 0.4
(Assume that no dividends are currently being paid and use BSOPM model)
What is the value of a call on the Peter?
a.
RM6.50
b.
RM8.05
c.
RM7.17
d.
RM6.80
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Personal Financial Planning For Executives And Entrepreneurs
Authors: Michael J. Nathanson, Jeffrey T. Craig, Jennifer A. Geoghegan, Nadine Gordon Lee, Michael A. Haber, Seth P. Hieken, Matthew C. Ilteris, D. Scott McDonald, Joseph A. Salvati, Stephen R. Stelljes
1st Edition
3030405273, 978-3030405274
