Using the Black/Scholes Option Pricing Model, calculate the value of the call option given: S = 70; X = 80; T = 3 months; = .49; Rf = 10% What is the intrinsic value of the call? What stock price is necessary to break - even?

What does it mean to assert that the delta of a call option is 0.7? How can a short position in 1,000 options be made delta neutral when the delta of each option is 0.7?

Black-Scholes Model Use the Black-Scholes model to find the price for a call option with the following inputs: (1) current stock price is $32, (2) strike price is $37, (3) time to expiration is 3 months, (4) annualized risk-free rate is 7%, and (5) variance of stock return is 0.16. Do not round intermediate calculations. Round your answer to the nearest cent.

What is the put option premium given the following information? What would happen to the Put option premium if the risk-free rate significantly declined from its current level? Stock price $28.00 Strike price $35.00 Volatility 50% Dividend Yield 0.00 Time 0.50 Riskfree Rate 3.50%

A call option will cost more today if I. the underlying asset's value in today's market is lower. II. its exercise price is higher. III. the stock's current value goes up. IV. its strike price goes down.

Topic: Option Pricing When computing, please do not round off. Only final answers must be rounded off to two decimal places Based on the Black-Scholes model, the price of a put option should be P2,800. If the underlying asset has a strike price of P60,000 and a market price of P58,500, how much is the extrinsic value of the option?