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Calculate the Implied Volatility of the following options on Stock XYX. Stock Price=$50; Risk Free Rate...

Calculate the Implied Volatility of the following options on Stock XYX.

Stock Price=$50; Risk Free Rate =10%; Dividends =$0;

Expiration Date=1 Year; Strike Price =$50; Option Price= $7

Solutions

Expert Solution

Hence, Implied volatility = 0.49285

Please do rate me and mention doubts, if any, in the comments section.

jeff jeffy answered 1 year ago
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