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Calculate the volatility of the call option

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Reference no: EM132033341

1. You charged $4200 on your credit card for holiday gifts. Your credit card company charges you 8% annual interest, compounded monthly. If you make the minimum payments of $65 per month, how long will it take (to the nearest month) to pay off your balance?

2. A stock currently trades at $50. It pays dividends at a rate of 2%, and the risk-free rate is also 2%. A 3-month call option with a strike price of $50 is trading at $2.

Calculate the implied volatility of the underlying stock.

Calculate the volatility of the call option.

Reference no: EM132033341

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