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Determine the option price for a call option

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Use the Black-Scholes model to determine the option price for a call option which will expire in 0.5 year. The strike price is $18, the stock pays no dividends and has a current market price of $20. The annualized volatility of the stock is 15%. The interest rate on a T-bill that matures in one year is 2%. Round your final answers to 4 decimal places. For example, if your answer is -$1,234.56789, please enter -1234.5679.

Reference no: EM133003817

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