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A stock`s current price is $30. A put option written on this stock has the exercise...

A stock`s current price is $30. A put option written on this stock has the exercise price at $32. The time to

maturity of this put option is 2 years, and the risk-free rate is 5% per year. If currently, this put option is

selling at $2.1, please find the implied volatility of the stock.

Solutions

Expert Solution

Go to Data Tab->What If Analysis->GOal Seek

The implied volatility comes out to be 15.60%

jeff jeffy answered 1 year ago
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