Question
Use the Black Scholes Option Pricing Model to find the premium for a put option on Target stock. The stock is currently trading for $172.97
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Use the Black Scholes Option Pricing Model to find the premium for a put option on Target stock.
The stock is currently trading for $172.97 per share.
The strike price is $160, the time until expiration is 60 days, the risk free rate is .5% and the volatility of Target stock is .28.
A. $2.72
B. $2.63
C. $248
D. $1.16
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Personal Finance
Authors: E Thomas Garman, Raymond E Forgue
10th Edition
143903902X, 9781439039021
