Question
Using the Black-Scholes model calculate the value of a call option with the following information: Item Values Stock price $59 Strike price - exercise price
Using the Black-Scholes model calculate the value of a call option with the following information:
| Item | Values |
| Stock price | $59 |
| Strike price - exercise price | $65.49 |
| Stock's standard deviation | 17.9% |
| risk free rate | 7% |
| time | 1 |
What is the call price?
What would be the call price if the stock price was $64?
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Using the Black-Scholes model calculate the value of a call option with the following information:
| Item | Values |
| Stock price | $42 |
| Strike price - exercise price | $38.22 |
| Stock's standard deviation | 24.8% |
| risk free rate | 2.6% |
| time | 1.75 |
What is the call price?
What would be the call price if the strike price was $43.22?
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Making Sense Of School Finance
Authors: Clinton Born
1st Edition
1475856652, 978-1475856651
