When the non-dividend paying stock price is $20, the strike price is $20, the risk-free rate is 5%, the volatility is 20% and the time
When the non-dividend paying stock price is $20, the strike price is $20, the risk-free rate is 5%, the volatility is 20% and the time to maturity is 3 months which of the following is the price of a European put option on the stock
A. 19.7N(-0.1)-20N(-0.2)
B. 20N(-0.1)-20N(-0.2)
C. 19.7N(-0.2)-20N(-0.1)
D. 20N(-0.2)-20N(-0.1)
A is the correct answer- but I am looking how to compute the problem. Please show written work, not excel
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Authors: Doris Barrell
15th Edition
1475462077, 978-1475462074
