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Todays price of Apple (AAPL) is $200 per share. AAPL does not pay dividends. The annualized volatility of AAPL is 15 percent. The c.c. risk-free
Todays price of Apple (AAPL) is $200 per share. AAPL does not pay dividends. The annualized volatility of AAPL is 15 percent. The c.c. risk-free interest rate is one percent. Assume there is no arbitrage and the Black-Scholes model assumptions hold.
What is the price of a European call option on AAPL with a strike of $200 and a maturity of two months?
I tried $4.72 and it was incorrect
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