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Problem 17-8 Black-Scholes What are the prices of a call option and a put option with...

Problem 17-8 Black-Scholes

What are the prices of a call option and a put option with the following characteristics? (Do not round intermediate calculations and round your final answers to 2 decimal places (e.g., 32.16).)

Stock price = $84

Exercise price = $80

Risk-free rate = 4.9% per year, compounded continuously

Maturity = 4 months

Standard deviation = 63% per year

Call price $

Put price $

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jeff jeffy answered 1 year ago
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