Question
The options on the stock of the Petronas Gas Berhad have the following input values: Stock price = $55 Strike price = $52 Risk-free rate
The options on the stock of the Petronas Gas Berhad have the following input values:
Stock price = $55
Strike price = $52
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 Petronas Gas Berhad?
a. $6.50
b. $7.17
c. $6.80
d. $8.05
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Financial Management
Authors: I.M. Pandey
12th Edition
939057725X, 978-9390577255
