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Use the Black-Scholes formula to find the value of a call option based on the following inputs. (Do not round intermediate calculations. Round your final
Use the Black-Scholes formula to find the value of a call option based on the following inputs. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
| Stock price | $ | 42 | |||
| Exercise price | $ | 58 | |||
| Interest rate | 0.070 | ||||
| Dividend yield | 0.04 | ||||
| Time to expiration | 0.50 | ||||
| Standard deviation of stocks returns | 0.270 | ||||
Call Value:
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Mergers Acquisitions And Other Restructuring Activities
Authors: Donald DePamphilis
10th Edition
0128150750, 978-0128150757
