Question
You are given the following information concerning options on a particular stock. Stock price=$59, Exercise price= $55, Risk-free rate= 4% per year compounded continuously. Maturity=
You are given the following information concerning options on a particular stock. Stock price=$59, Exercise price= $55, Risk-free rate= 4% per year compounded continuously. Maturity= 3 months, Standard deviation= 48% per year. What is the intrinsic value of each option? What is the time value of each option?
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International Finance Transactions Policy And Regulation
Authors: Hal S. Scott
15th Edition
159941547X, 978-1599415475
