Use the Black-Scholes formula for the following stock: Time to expiration Standard deviation 6 months Exercise price Stock price 44% per year $46 $45 Annual interest rate 4% Dividend

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Wanting to double-check my steps and the answer I solved for ($3.90)... Having trouble with the Black-Scholes. Thank you in advance!

Use the Black-Scholes formula for the following stock:
Time to expiration
6 months
Standard deviation
44% per year
$46
Exercise price
Stock price
$45
Annual interest rate
4%
Dividend
Calculate the value of a call option. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Transcribed Image Text:Use the Black-Scholes formula for the following stock: Time to expiration 6 months Standard deviation 44% per year $46 Exercise price Stock price $45 Annual interest rate 4% Dividend Calculate the value of a call option. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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