Question
Use the following Call Option Information for parts a-b:Strike (K) is $1.42, Maturity (T) is in 31 trading days (assume 260 trading days in the
Use the following Call Option Information for parts a-b:Strike (K) is $1.42, Maturity (T) is in 31 trading days (assume 260 trading days in the year), and a discount rate (r) of .0006.
a.What is the implied volatility (standard deviation) if the Spot price (S) is $1.3852?
b.What is the Call Premium if the Spot price is $1.3891 and the standard deviation is 0.0057?
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
