What is the value of a call option if the underlying stock price is $93, the strike price is $85, the underlying stock volatility is 36 percent, and the risk-free rate is 4.6 percent? Assume the option has 154 days to expiration. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Call option

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What is the value of a call option if the underlying stock price is $123, the strike price is $115, the underlying stock volatility is 41 percent, and the risk-free rate is 5.2 percent? Assume the option has 132 days to expiration. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Call option $ 17.34 + 1% Explanation In (123/115) + (0.052 +0.41/2) 132/365 di 0.41 132/365 0.4723 d2 0.4723 0.41 132/365 = 0.2258 The standard normal probabilities are: N(C4) = 0.6816 Nid) = 0.5893 Calculating the price of the call option yields: C = ($123 * 0.6816) ($115 -0.052 * 132/365 x 0.5893) = $17.34