Question
In: Finance
Use the Black-Scholes formula to find the value of a call option based on the following...
Use the Black-Scholes formula to find the value of a call option
based on the following inputs. (Round your final answer to
2 decimal places. Do not round intermediate
calculations.)
| Stock price | $ | 53.00 | ||||
| Exercise price | $ | 51.00 | ||||
| Interest rate | 5.00 | % | ||||
| Dividend yield | 3.00 | % | ||||
| Time to expiration | 0.2500 | |||||
| Standard deviation of stock’s returns | 38.00 | % | ||||
Call value $
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Use the Black-Scholes formula to find the value of a call option based on the following...
Use the Black-Scholes formula to find the value of a call option
based on the following inputs. (Round your final answer to
2 decimal places. Do not round intermediate
calculations.)
Stock price
$
36.00
Exercise price
$
45.00
Interest rate
6.00
%
Dividend yield
5.00
%
Time to expiration
0.5833
Standard deviation of stock’s returns
49.00
%
Call value
$
?
Use the Black-Scholes formula to find the value of a call option based on the following...
Use the Black-Scholes formula to find the value of a call option
based on the following inputs. (Round your final answer to
2 decimal places. Do not round intermediate
calculations.)
Stock price
$
39.00
Exercise price
$
31.00
Interest rate
6.00
%
Dividend yield
1.00
%
Time to expiration
0.9167
Standard deviation of stock’s returns
26.00
%
Call value
Use the Black-Scholes formula to find the value of a call option based on the following...
Use the Black-Scholes formula to find the value of a call option
based on the following inputs. (Round your final answer to
2 decimal places. Do not round intermediate
calculations.)
Stock price
$
38.00
Exercise price
$
40.00
Interest rate
3.00
%
Dividend yield
5.00
%
Time to expiration
0.7500
Standard deviation of stock’s returns
40.00
%
Call value
$
Use the Black-Scholes formula to find the value of a call option based on the following...
Use the Black-Scholes formula to find the value of a call option
based on the following inputs. (Round your final answer to 2
decimal places. Do not round intermediate calculations.) Stock
price $ 62 Exercise price $ 59 Interest rate 8 % Dividend yield 4 %
Time to expiration 0.50 Standard deviation of stock’s returns 28
%
Use the Black–Scholes formula to value the following option: A call option written on a stock...
Use the Black–Scholes formula to value the following
option: A call option written on
a stock selling for $60 per
share with a $60 exercise price. The stock's standard
deviation is 6% per month. The
option matures in three months. The risk-free
interest rate is 1% per
month.
What is the value of a put option written on the same stock at the
same
time,
with the same exercise price and expiration date.
Use the Black-Scholes formula to the value of a call option given the following information: T=...
Use the Black-Scholes formula to the value of a call option
given the following information:
T= 6 months
standard deviation=25%
Exercise price= 50
Stock price=50
Interest rate= 2%
3.75
2.87
3.11
3.63
Use the information in the previous question to find the value
of a six month put option on the same stock with an exercise price
of 50. Round intermediate steps to four decimals and round your
final answer to two decimals.
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.
Problem 21-12 Black–Scholes model Use the Black–Scholes formula to value the following options: a. A call...
Problem 21-12 Black–Scholes model
Use the Black–Scholes formula to value the following
options:
a. A call option written on a stock selling for
$68 per share with a $68 exercise price. The stock's standard
deviation is 6% per month. The option matures in three months. The
risk-free interest rate is 1.75% per month.
b. A put option written on the same stock at
the same time, with the same exercise price and expiration
date.
How do I use the black Scholes model to find the value of a call option...
How do I use the black Scholes model to find the value of a call
option and the value of a put option for each stock? I am doing two
companies, apple and coca-cola.
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.
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