The stock of Lead Zeppelin, a metal manufacturer, currently sells for $65 and has a volatility of 46 percent. The risk-free rate is 4.6 percent. What is the value of a European put option with a strike pric of $70 and 37 days to expiration? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places) The standard normal probabilities are: N(d)=3442 (d2) = 2921
The stock of Lead Zeppelin, a metal manufacturer, currently sells for $65 and has a volatility of 46 percent. The risk-free rate is 4.6 percent. What is the value of a European put option with a strike pric of $70 and 37 days to expiration? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places) The standard normal probabilities are: N(d)=3442 (d2) = 2921
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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Transcribed Image Text:The stock of Lead Zeppelin, a metal manufacturer, currently sells for $65 and has a volatility of 46 percent. The risk-free rate is 4.6 percent. What is the value of a European put option with a strike price
of $70 and 37 days to expiration? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places)
The standard normal probabilities are:
N(d1) = 3442
N(d2) = 2921
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