Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Assume the following inputs for a call option: (1) current stock price is $30, (2) strike price is $33, (3) time to expiration is 4 months, (4) annualized risk- free rate is 3%, and (5) variance of stock return is 0.32. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet Use the Black-Scholes model to find the price for the call option. Do not round intermediate calculations. Round your answer to the nearest cent. $ A D
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Transcribed Image Text:Assume the following inputs for a call option: (1) current stock price is $30, (2) strike price is $33, (3) time to expiration is 4 months, (4) annualized risk- free rate is 3%, and (5) variance of stock return is 0.32. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet Use the Black-Scholes model to find the price for the call option. Do not round intermediate calculations. Round your answer to the nearest cent. $ A D
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