Use the Black-Scholes formula to find the value of a call option based on the following inputs. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Stock price Exercise price $ $ 54 63 Interest rate 0.082 Dividend yield Time to expiration 0.04 0.50 Standard deviation of stock's returns 0.260

Use the Black-Scholes formula to find the value of a call option based on the following inputs. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Stock price Exercise price $ $ 54 63 Interest rate 0.082 Dividend yield Time to expiration 0.04 0.50 Standard deviation of stock's returns 0.260

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter5: Financial Options

Section: Chapter Questions

Problem 3Q

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Use the Black-Scholes formula to find the value of a call option based on the following inputs. (Round your final answer to 2 decimal places. Do not round intermediate calculations.) Stock price Exercise price Interest rate Dividend yield Time to expiration Standard deviation of stock's returns Call value GA $ $ $ 48 60 0.07 0.04 0.50 0.26
Use the Black-Scholes formula to find the value of a call option based on the following inputs. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Stock price Exercise price Interest rate Dividend yield Time to expiration Standard deviation of stock's returns Call value $ 51 $ 64 0.068 0.04 0.50 0.265
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You are given the following information on some company's stock, as well as the risk- free asset. Use it to calculate the price of the call option written on that stock, as well as the price of the put option. (HINT: You should use the Black-Scholes formula!) (Do not round intermediate calculations and round your final answers to 2 decimal places, e.g., 32.16.) Today's stock = $74 price Exercise price = $70 Risk-free rate = Option maturity = 4 months Standard deviation of annual stock returns 4.4% per year, compounded continuously Call price Put price = 62% per year