In: Finance
Use the Black-Scholes model to find the value for a European put option that has an exercise price of $27.00 and 0.5833 years to expiration. The underlying stock is selling for $20.00 currently and pays an annual dividend yield of 0.02. The standard deviation of the stock’s returns is 0.2400 and risk-free interest rate is 0.05 what is the put value?