Determine the value of the call option

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Reference no: EM133075295

On Aug 5, 2013, Indah-Tech (IT) stock is selling at RM30. The IT Dec 26 call option had a closing value of RM4.13 . On Aug 5, the option had 120days to expiration. The annual risk-free interest rate is 6 percent. The standard deviation has been estimated to be 46 percent per annum.

Required:

-Determine the value of the call option using the Black-Scholes formula.

-Determine the price of the corresponding put will be?

Reference no: EM133075295

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