Question
Use black-scholes Formular: Call option purchased on JPMorgan Chase common stock Notional value: $3,000,000 Strike price: $72 Expiry: 31 December 2016 Volatility: 20% p.a. Risk-free
Use black-scholes Formular:
Call option purchased on JPMorgan Chase common stock
Notional value: $3,000,000
Strike price: $72 Expiry: 31 December 2016
Volatility: 20% p.a.
Risk-free rate: 1.15% p.a.
Current market price: $67
Dividend yield: 1.75% p.a.
Stock option price: calculation $3million 1-year call purchased on JPMorgan Chase stock
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cost Estimating
Authors: Rodney D. Stewart
2nd Edition
0471857076, 978-0471857075
