Use the Black-Scholes formula for the following stock: Time to expiration 6 months Standard deviation 58%...

Use the Black-Scholes formula for the following stock:


Time to expiration	6 months
Standard deviation	58% per year
Exercise price	$56
Stock price	$55
Annual interest rate	7%
Dividend	0

Calculate the value of a call option. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Use the Black-Scholes formula for the following stock:


Time to expiration	6 months
Standard deviation	48% per year
Exercise price	$49
Stock price	$47
Annual interest rate	7%
Dividend	0

Calculate the value of a put option. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Expert Solution

jeff jeffy answered 2 years ago

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