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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
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
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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
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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