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Time to expiration = 6 months Standard deviation = 50 % per year Exercise price = $ 50 Stock price = $ 50 Interest rate
| Time to expiration | = | 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 Strategy
Authors: Belen Villalonga
1st Edition
1783504935, 978-1783504930
