Question
The spot price is 50. The exercise price on a one year call is 48. The standard deviation of the spot is 25%. The risk
The spot price is 50. The exercise price on a one year call is 48. The standard deviation of the spot is 25%. The risk free rate is 3%. Find the intrinsic value, time value and premium for this call. ( Answers: Intrinsic value = 2; Time Value = 4.52; Premium = 6.52) Please show how these answers are found. Thank you!
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The Courage To Be Profitable Get And Stay Profitable In Less Than 30 Minutes A Month
Authors: Ruth King
1st Edition
1614484627, 978-1614484622
