A stock is currently priced at $66 and has an annual standard deviation of 46 percent. The dividend yield of the stock is 2.1 percent and the risk-free rate is 2.3 percent. What is the value of a call option on the stock with a strike price of $63 and 33 days to expiration? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Value of a call option $ 5.14 X
A stock is currently priced at $66 and has an annual standard deviation of 46 percent. The dividend yield of the stock is 2.1 percent and the risk-free rate is 2.3 percent. What is the value of a call option on the stock with a strike price of $63 and 33 days to expiration? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Value of a call option $ 5.14 X
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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Transcribed Image Text:A stock is currently priced at $66 and has an annual standard deviation
of 46 percent. The dividend yield of the stock is 2.1 percent and the
risk-free rate is 2.3 percent. What is the value of a call option on the
stock with a strike price of $63 and 33 days to expiration? (Use 365
days in a year. Do not round intermediate calculations. Round your
answer to 2 decimal places.)
X Answer is complete but not entirely correct.
Value of a call option
$
5.14 X
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