Find the value for european put option

Assignment Help Financial Management

Reference no: EM131906594

Use the Black-Scholes model to find the value for a European put option that has an exercise price of $62.00 and four months to expiration. The underlying stock is selling for $63.00 currently and pays an annual dividend of $1.62. The standard deviation of the stock’s returns is 0.16 and risk-free interest rate is 4.0%. (Round intermediary calculations to 4 decimal places. Round your final answer to 2 decimal places.)

Put value $

Reference no: EM131906594

Questions Cloud

What is winklemans psychocultural model : What is Winkleman's psychocultural model? In what ways does it offer advantages over traditional studies in challenging ethnocentrism.

Analyse an important and interesting economic issue : The essay should analyse an important and interesting economic issue using concept(s) from behavioural economics

What will be its stock price the recapitalization : Assuming that the company maintains the same payout ratio, what will be its stock price following the recapitalization?

What is the anode electrode : Answer the following questions. Do not include aggregation states in your answers.

Find the value for european put option : Use the Black-Scholes model to find the value for a European put option that has an exercise price of $62.00 and four months to expiration

Understand the idea of nuclear binding energy : Now that you understand the idea of nuclear binding energy, explain why the larger atoms need an excess of neutrons compared to protons.

Call option-what should the stock price be : A call option on Jupiter Motors stock with an exercise price of $50 and one-year expiration is selling at $4. what should the stock price be?

How businesses are leveraging internet to conduct business : Analyze each of the websites in terms of the overall look and feel of the site from the perspective of the targeted consumer, as well as how well each site

What is the efficiency : In a copper purification apparatus depositing Cu from a CuSO4 solution, operation for 5.44 hours at a constant current of 6.74 A deposits 38.8 g of Cu metal.

User Account

All Pages