Use the Black-Scholes formula to find the value of a call option based on the following inputs. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Stock price Exercise price $ $ 54 63 Interest rate 0.082 Dividend yield Time to expiration 0.04 0.50 Standard deviation of stock's returns 0.260

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
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Having trouble with Black-Scholes regarding the question below of finding the Call Value... 

Use the Black-Scholes formula to find the value of a call option based on the following inputs. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

- **Stock price**: $54
- **Exercise price**: $63
- **Interest rate**: 0.082
- **Dividend yield**: 0.04
- **Time to expiration**: 0.50
- **Standard deviation of stock’s returns**: 0.260
Transcribed Image Text:Use the Black-Scholes formula to find the value of a call option based on the following inputs. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) - **Stock price**: $54 - **Exercise price**: $63 - **Interest rate**: 0.082 - **Dividend yield**: 0.04 - **Time to expiration**: 0.50 - **Standard deviation of stock’s returns**: 0.260
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