A stock has a price of $31 and an annual return volatility of 50 percent. The risk-free rate is 2.95 percent. Perform calculations in Excel. a. Calculate the call and put option prices with a strike price of $25 and a 90-day expiration. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Call premium Put premium LA LA b. Calculate the deltas of the call and put. (Negative amounts should be indicated by a minus sign. Round your answers to 4 decimal places.)
A stock has a price of $31 and an annual return volatility of 50 percent. The risk-free rate is 2.95 percent. Perform calculations in Excel. a. Calculate the call and put option prices with a strike price of $25 and a 90-day expiration. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Call premium Put premium LA LA b. Calculate the deltas of the call and put. (Negative amounts should be indicated by a minus sign. Round your answers to 4 decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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