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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What is the value of a call option if the underlying stock price is $71, the strike price is $73, the underlying stock volatility is 35 percent,
and the risk-free rate is 4.8 percent? Assume the option has 132 days to expiration. (Use 365 days in a year. Do not round
intermediate calculations. Round your answer to 2 decimal places.)
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Transcribed Image Text:What is the value of a call option if the underlying stock price is $71, the strike price is $73, the underlying stock volatility is 35 percent, and the risk-free rate is 4.8 percent? Assume the option has 132 days to expiration. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.)
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