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Use the Black Scholes formula to find the value of the following call option. Note: Do not round intermediate calculations. Round your final answer to
Use the BlackScholes formula to find the value of the following call option.
Note: Do not round intermediate calculations. Round your final answer to decimal places.
Time to expiration year.
Standard deviation per year.
Exercise price $
Stock price $
Interest rate effective annual yield
Now recalculate the value of this call option, but use the following parameter values. Each change should be considered independently.
Note: Do not round intermediate calculations. Round your final answers to decimal places.
Time to expiration years.
Standard deviation per year.
Exercise price $
Stock price $
Interest rate
In which case did increasing the value of the input not increase your calculation of option value?
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