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Using the Black-Scholes option pricing model, find the premium for a call on Disney. The stock...
- Using the Black-Scholes option pricing model, find the premium for a call on Disney. The stock currently trades for $138.58. The expiration is in 30 days. The strike price is $144. The risk free rate is 2% and the volatility (standard deviation) of the stock is .2
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Using the Black-Scholes options pricing model. Calculate the call option premium on a stock with an...
Using the Black-Scholes options pricing model. Calculate the
call option premium on a stock with an exercise price of $105,
which expires in 90 days. The stock is currently trading for $100
and the monthly standard deviation on the stock return is 3%. The
annual risk-free rate is 4% per year.
Using the Black-Scholes option pricing model, find the premium for a put on Uber. The stock...
Using the Black-Scholes option pricing model, find the premium
for a put on Uber. The stock currently trades for $26.70. The
expiration is in 23 days. The strike price is $30. The risk free
rate is 2.25% and the volatility (standard deviation) of the stock
is .44.
Black-Scholes Model Use the Black-Scholes model to find the price for a call option with the...
Black-Scholes
Model
Use the Black-Scholes
model to find the price for a call option with the following
inputs: (1) current stock price is $28, (2) strike price is $37,
(3) time to expiration is 2 months, (4) annualized risk-free rate
is 5%, and (5) variance of stock return is 0.36. Do not round
intermediate calculations. Round your answer to the nearest
cent.
Using the Black/Scholes Option Pricing Model, calculate the value of the call option given: S= 74; ...
Using the Black/Scholes Option Pricing Model, calculate
the value of the call option given:
S= 74;
X=70;
T=6 months;
=.50;
Rf =10%
What is the intrinsic value of the call?
What stock price is necessary to break-even?
If volatility were to decrease, the value of the call
would ___________?
If the exercise price would increase, the value of the
call would ___________?
If the time to maturity were 3-months, the value of the call
would ___________?...
Use the Black-Scholes option pricing model to price a one-year at the money call option on...
Use the Black-Scholes option pricing model to price a one-year
at the money call option on a stock that is trading at $50 per
share, Rf is 5%, annual volatility is 25%. REMEMBER TO USE THE
NORMAL PROBABILITY DOCUMENT posted on moodle. You are not allowed
to use Excel, you can only use your financial calculator. Show all
your work, including intermediate steps. Simply writing the final
answer will not get credit, even if the answer is correct.
a) What...
Using the Black-Scholes option pricing model, what is the price of a $1,310 2020-04-24 European call...
Using the Black-Scholes option pricing model, what is the price
of a $1,310 2020-04-24 European call option for Alphabet Inc.
(GOOG) stock purchased on 2020-03-16, assuming that the option
implied volatility is 53%, the stock price is $1,084, and the
risk-free rate is 1.5%?
Use the Black-Scholes model to find the price for a call option with the following inputs:...
Use the Black-Scholes model to find the price for a call option
with the following inputs: (1) current stock price is $30, (2)
strike price is $36, (3) time to expiration is 6 months, (4)
annualized risk-free rate is 7%, and (5) variance of stock return
is 0.16. Do not round intermediate calculations. Round your answer
to the nearest cent.
3. Use the Black-Scholes model to find the price for a call option with the following...
3. Use the Black-Scholes model to find the price for a call
option with the following inputs: 1) current stock price is $30, 2)
Strike price is 32, 3) Time expiration is 4 months, 4) annualized
risk-free rate is 5%, and 5) standard deviation of stock return is
0.25.
Use the Black-Scholes model to find the price for a call option with the following inputs:...
Use the Black-Scholes model to find
the price for a call option with the following inputs: (1) current
stock price is $45, (2) exercise price is
$50, (3) time to expiration is 3
months, (4) annualized risk-free rate is 3%, and
(5) variance of stock return is 0.50.
AND based on the information above,
find the value of a put with a $50 exercise price.
(SHOW CALCULATIONS PLEASE)
Use the binomial option pricing model to find the implied premium of a CALL option on...
Use the binomial option pricing model to find the implied
premium of a CALL option on Wendy’s. Wendy’s stock is currently
trading at $20.66. Have the model price at 10 day intervals for 3
nodes: 10 days, 20 days, and 30 days. The strike price is $18. The
risk free rate is 2.5% and the volatility(standard deviation) of
the stock is .40. Show the entire binomial tree.
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