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What are the prices of a call option and a put option with the following characteristics? (Do not round intermediate calculations and round your answers
| What are the prices of a call option and a put option with the following characteristics? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| Stock price | = | $86 |
| Exercise price | = | $85 |
| Risk-free rate | = | 5.00% per year, compounded continuously |
| Maturity | = | 4 months |
| Standard deviation | = | 62% per year |
| Call price | $ |
| Put price | $ |
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Public Finance
Authors: Harvey Rosen, Ted Gayer
8th Edition
0073511285, 9780073511283
