Please Give me the right answer and calculations The current stock price of Johnson and Johnson is $64 and the stock does not pay dividend. the instantaneous risk free rate return of 5%. The instantaneous standard deviation of J&J’s stock is 20% you want to purchase a put option on this stock with an excercise price of $55 and an expiration date 73 days from now using the black scholes the put option should be worth today Multiple choice .01 .09 9.26 9.62 Others
Please Give me the right answer and calculations The current stock price of Johnson and Johnson is $64 and the stock does not pay dividend. the instantaneous risk free rate return of 5%. The instantaneous standard deviation of J&J’s stock is 20% you want to purchase a put option on this stock with an excercise price of $55 and an expiration date 73 days from now using the black scholes the put option should be worth today Multiple choice .01 .09 9.26 9.62 Others
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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Please Give me the right answer and calculations
The current stock price of Johnson and Johnson is $64 and the stock does not pay dividend. the instantaneous risk free rate return of 5%. The instantaneous standard deviation of J&J’s stock is 20% you want to purchase a put option on this stock with an excercise price of $55 and an expiration date 73 days from now using the black scholes the put option should be worth today
Multiple choice
.01
.09
9.26
9.62
Others
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