nts Required: Use the Black-Scholes formula to find the value of a call option based on the following inputs. Refer Cumulative normal distribution Table. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Stock price Exercise price Interest rate $ 65 $ 71 8% eBook Dividend yield 4% Time to expiration 0.5 eferences Standard deviation of stock's 28% returns Call value
nts Required: Use the Black-Scholes formula to find the value of a call option based on the following inputs. Refer Cumulative normal distribution Table. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Stock price Exercise price Interest rate $ 65 $ 71 8% eBook Dividend yield 4% Time to expiration 0.5 eferences Standard deviation of stock's 28% returns Call value
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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Required:
Use the Black-Scholes formula to find the value of a call option based on the following inputs. Refer Cumulative normal distribution
Table. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Stock price
Exercise price
Interest rate
$ 65
$ 71
8%
eBook
Dividend yield
4%
Time to expiration
0.5
eferences
Standard deviation of stock's
28%
returns
Call value
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