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Using the Black-Scholes option pricing model, what is the price of a $1,310 2020-04-24 European call...

Using the Black-Scholes option pricing model, what is the price of a $1,310 2020-04-24 European call option for Alphabet Inc. (GOOG) stock purchased on 2020-03-16, assuming that the option implied volatility is 53%, the stock price is $1,084, and the risk-free rate is 1.5%?

Solutions

Expert Solution

Number of Days between 16/03/2020 to 24/04/2020 is 39 Days

Value of Call Option = $14.58

Please dont forget to upvote

jeff jeffy answered 2 years ago
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