The stock of Nugents Nougats currently sells for $39 and has an annual standard deviation of 40 percent. The stock has a dividend yield of 2.2 percent, and the risk-free rate is 4.2 percent. What is the value of a call option on the stock with a strike price of $35 and 58 days to expiration? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Call option

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The stock of Nugents Nougats currently sells for $51 and has an annual standard deviation of 52 percent. The stock has a dividend yield of 3.2 percent, and the risk-free rate is 4.8 percent. What is the value of a call option on the stock with a strike price of $47 and 79 days to expiration? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Call option $ 703 + 1% Explanation In(51/47) + (0.048 -0.032 +0.522/2) x 79/365 di 0.52 x 79/365 -0.4729 d2 = 0.4729 -0.5279/365 = 0.231 The standard normal probabilities are: Nid) = 0.6819 N(C) = 0.5913 Calculating the price of the call option yields: C = ($51 x -0.032 x 79/365 x 0.6819) (547x -0.048 x 79/365 x 0.5913) = $7.03