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Use the following information: stock price = $166.85 strike price = $170 time steps of 10 days make 3 time steps, 10 days out, 20
Use the following information:
- stock price = $166.85
- strike price = $170
- time steps of 10 days
- make 3 time steps, 10 days out, 20 days out and 30 days out
- risk free rate = .5%
- volatility = .25
What is the premium today?
| A. | $2.71 | |
| B. | $6.51 | |
| C. | $3.68 | |
| D. | $1.78 |
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Investments Analysis And Management
Authors: Charles Jones, Nick Jones
11th Edition
0470477121, 9780470477120
