Question
Use the Black Scholes Option Pricing Model to find the premium the premium for a call option on Netflix stock. The stock is currently trading
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Use the Black Scholes Option Pricing Model to find the premium the premium for a call option on Netflix stock.
The stock is currently trading for $489.38 per share.
The strike price is $485, the time until expiration is 40 days, the risk free rate is .5% and the volatility of Netflix stock is .37.
A. $24.55
B. $26.18
C. $26.61
D. $22.97
Use the Black Scholes Option Pricing Model to find the premium the premium for a call option on Netflix stock.
The stock is currently trading for $489.38 per share.
The strike price is $485, the time until expiration is 40 days, the risk free rate is .5% and the volatility of Netflix stock is .37.
| A. | $24.55 | |
| B. | $26.18 | |
| C. | $26.61 | |
| D. | $22.97 |
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Investments Analysis And Management
Authors: Charles Jones, Nick Jones
11th Edition
0470477121, 9780470477120
