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Use the Black-Scholes Option Pricing model to value a call option on the stock of Houston-based Long-Range Videoing Equipment Inc. d.b.a. Outfield Sign Stealers Inc.
Use the Black-Scholes Option Pricing model to value a call option on the stock of Houston-based
| Long-Range Videoing Equipment Inc. d.b.a. Outfield Sign Stealers Inc. | ||||
| Current stock price | $15 | d1 | 0.24495 | |
| Option strike price | $15 | d2 | 0 | |
| Option time to maturity | 6 | months | N(d1) | 0.596752427 |
| Stock return variance | 0.12 | N(d2) | 0.5 | |
| risk-free rate | 6% | |||
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Personal Finance An Integrated Approach
Authors: Bernard J. Winger
4th Edition
0198520972, 9780132696302
