Question
Use the Black-Scholes formula to find the value of a call option based on the following inputs. Refer Cumulative normal distribution Table. (Do not round
Use the Black-Scholes formula to find the value of a call option based on the following inputs. Refer Cumulative normal distribution Table. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
| Stock price | $ 66 |
|---|---|
| Exercise price | $ 72 |
| Interest rate | 8% |
| Dividend yield | 4% |
| Time to expiration | 0.5 |
| Standard deviation of stocks returns | 28% |
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
