Question
Using the Black/Scholes Option Pricing Model, calculate the value of the call option given: S= 85; X=95; T=6 months; =.6; Rf=10% a) What is the
Using the Black/Scholes Option Pricing Model, calculate the value of the call option given: S= 85; X=95; T=6 months; =.6; Rf=10%
a) What is the minimum value that a call can take? Why?
b) What increase in price does the stock have to achieve in order to break-even? ___________
c) What is the time value of the call option?____________
If you buy a bottom-straddle what strategy are you trying to use?
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Day Trading Cardinal Rules For Passive Income
Authors: Brian Stclair
1st Edition
1539480313, 978-1539480310
