Call with strike price-black-scholes option pricing model

Assignment Help Financial Management

Reference no: EM131352782

What is the value of a 9-month call with a strike price of $55 given the Black-Scholes option pricing model and the following information?

Stock price $61

Risk-free rate 5 percent

Standard deviation 42 percent

N(d1) .715535

N(d2) .581564

a. $32.36

b. $47.47

c. $19.42

d. $56.10

e. $12.84

Reference no: EM131352782

Questions Cloud

Expalin aspects of article that are relevant to the research : Describe two aspects of each article that are relevant to the research topic you have chosen. Provide a preliminary reference page in APA format of the articles you summarized.

Identify one potential benefit of the type of theraphy : At the community mental health center you are assigned to counsel an adult client who has Major Depressive Disorder, recurrent with psychotic features as well as Borderline Personality Disorder. She is a 55-year-old who also has addiction issues. ..

Studying the effect of a drug on blood pressure levels : In an experiment studying the effect of a drug on blood pressure levels in old dogs, what would be the dependent variable and what would be the independent variable? If in the next step of the experiment the effect of this drug was compared to an ..

Encode the given sequence using the lz77 algorithm : Encode the following sequence using the LZ77 algorithm:- Assume you have a window size of 30 with a look-ahead buffer of size 15.

Call with strike price-black-scholes option pricing model : What is the value of a 9-month call with a strike price of $55 given the Black-Scholes option pricing model and the following information?

Encode the decoded sequence : Assume that the size of the window is 20 and the size of the look-ahead buffer is 10. Encode the decoded sequence and make sure you get the same sequence of triples.

Can any organism follow an exponential growth forever : Can any organism follow an exponential growth forever? What are the limiting factors? Review the dynamics of human population growth in the past 2000 years.

Sexual reproduction benefit offspring in terms of genetic : How does sexual reproduction benefit the offspring in terms of genetic variation? Provide an example.

Calculate the fractional difference in population : Electron spin resonance is much like nuclear magnetic resonance except that electronic transitions are excited between atomic Zeeman levels.

User Account

All Pages