Question
Time to experiation=6 months Standard Deviation=50% per year Exercise Price=$50 Stock Price=$50 Interest Rate=3% Use the Black-Scholes formula to find the value of a call
Time to experiation=6 months
Standard Deviation=50% per year
Exercise Price=$50
Stock Price=$50
Interest Rate=3%
| Use the Black-Scholes formula to find the value of a call option on the above stock: Calculate the value of a call option. (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Value of a call option | $ |
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Finance And Occupational Pensions
Authors: Charles Sutcliffe
1st Edition
1349948624, 978-1349948628
