q 20 A non-dividend paying stock is currently trading at $60 and its volatility is 20%...

q 20 A non-dividend paying stock is currently trading at $60 and its volatility is 20% per annum. Risk free rate is 12% per annum. Consider a European call option with a strike price of $58 that will expire in three months. What is the price of this call option based on Black-Scholes model? (Enter your answer in two decimals without $ sign)

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Price of call is 4.63

jeff jeffy answered 1 year ago

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