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Using the Black-Scholes model calculate the value of a call option with the following information: Item Values Stock price $39 Strike price - exercise price
Using the Black-Scholes model calculate the value of a call option with the following information:
Item | Values |
Stock price | $39 |
Strike price - exercise price | $31.98 |
Stock's standard deviation | 19.2% |
risk free rate | 7.7% |
time | 0.5 |
What is the call price?
What would be the call price if the stock price was $44?
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