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Using Black Scholes Model: 12a. Calculate the value of a 9-month call option on platinum forward...

Using Black Scholes Model:

12a. Calculate the value of a 9-month call option on platinum forward if the 9-month forward price is 718.4 per ounce, the strike price is 725 per ounce, the standard deviation of returns on platinum is 0.0795, and the risk free interest rate is 1.75%. b. Calculate the value of a 9-month put option on platinum forward assuming the same characteristics as in part a.

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ANSWER IN THE IMAGE((YELLOW HIGHLIGHTED). FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.

A. Call

B. put

jeff jeffy answered 2 years ago
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