In: Finance
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 | $ | 38.00 | ||||
Exercise price | $ | 40.00 | ||||
Interest rate | 3.00 | % | ||||
Dividend yield | 5.00 | % | ||||
Time to expiration | 0.7500 | |||||
Standard deviation of stock’s returns | 40.00 | % | ||||
Call value $