The Black-Scholes model is used to value call options on the stock of National Co. The following information was identified: · The share price is P43. · The option matures in 6 months · The risk-free rate is 2%. · Price of the option is at P43. What is the exponent of “e” for in computing the value of the call option using the Black-Scholes model?
The Black-Scholes model is used to value call options on the stock of National Co. The following information was identified: · The share price is P43. · The option matures in 6 months · The risk-free rate is 2%. · Price of the option is at P43. What is the exponent of “e” for in computing the value of the call option using the Black-Scholes model?
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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The Black-Scholes model is used to value call options on the stock of National Co. The following information was identified:
· The share price is P43.
· The option matures in 6 months
· The risk-free rate is 2%.
· Price of the option is at P43.
What is the exponent of “e” for in computing the value of the call option using the Black-Scholes model?
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