Question
Use the Black-Scholes formula for the following stock: Time to expiration 6 months Standard deviation 50% per year Exercise price $52 Stock price $50 Annual
Use the Black-Scholes formula for the following stock:
| Time to expiration | 6 months | |
| Standard deviation | 50% per year | |
| Exercise price | $52 | |
| Stock price | $50 | |
| Annual interest rate | 3% | |
| Dividend | 0 | |
Calculate the value of a put option. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
1. Value of Put Option =
I NEED to see this worked out by hand (pen & paper) to understand and learn how to do it on my own without the use of excel. Please show all work in arriving at an answer. Thanks!
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The Blockchain Developer A Practical Guide For Designing Implementing Publishing Testing And Securing Distributed Blockchain Based Projects
Authors: Elad Elrom
1st Edition
1484248465, 978-1484248461
