Question
Use the Black-Scholes Option Pricing Model for the following option. Stock price S 0 = $80; Time to Maturity T = 1 year; Risk free
Use the Black-Scholes Option Pricing Model for the following option.
Stock price S0 = $80;
Time to Maturity T = 1 year;
Risk free rate r = 10% annually;
Standard deviation STD = 20% per year.
No dividends will be paid before option expires.
Find the Black-Scholes value of a call option with an exercise price of $90 on the above stock?
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Finance A Quantitative Introduction Volume 1
Authors: Piotr Staszkiewicz, Lucia Staszkiewicz
1st Edition
0128015845, 978-0128015841
