Find the price for a call option with the inputs

Assignment Help Financial Management

Reference no: EM131880760

Use the Black-Scholes Model to find the price for a call option with the following inputs: (1) Current stock price is $30. (2) Strike price is $35. (3) Time to expiration is 4 months. (4) Annualized risk-free rate is 5%. (5) Variance of stock return is 0.25. Round your answer to the nearest cent. In your calculations round normal distribution values to 4 decimal places.

Reference no: EM131880760

Questions Cloud

Identify architecture that will be use in distributed system : identify the architecture that will be used in your distributed system project and you will modify your consultant's analysis report to address any new issues.

What is the present value of the bond : In 2012, Hospital Systems Inc. issued $750,000,000 worth of Series A Bonds. Assume that these 25-year bonds have a par value of $1,000 and a coupon rate.

What is the z value for a box : What is the z value for a box with 19.82 ounces of cereal? Answer to three decimal places if needed.

Calculate the future value of the two payments : Calculate the EUAB over a 6 year period of two payments - one of $20,000 in year 2 and another of $10,000 in year 4. The Equivalent Uniform Annual Benefit.

Find the price for a call option with the inputs : Use the Black-Scholes Model to find the price for a call option with the following inputs:

Describe the fundamental components of a distributed system : Describe the fundamental components of a distributed system. Compare and contrast advantages and disadvantages of at least 2 distributed system architectures.

Loan amount on mortgages for a particular zip code : Suppose that the loan amount on mortgages for a particular zip code is normally distributed with a mean of 154,449, measured in dollars

What is the probability that a loan will have : What is the probability that a loan will have a z-score of less than -1.5? Answer to at least four decimal places.

What is the actuarially fair insurance premium : what is the actuarially fair insurance premium to cover? Genentech's loss?

User Account

All Pages