Knowledge of the black-scholes option pricing model

Reference no: EM13770971

Ricardo International would like you to demonstrate your knowledge of the Black-Scholes option pricing model by finding the call price of an U.S. call option with the following characteristics:

stock price = $60
exercise price = $60
risk-free rate is 12%
volatility (variance of stock returns) = 9% per year
time to maturity = 6 months

Reference no: EM13770971

Questions Cloud

Relationship between business and society : According to the textbook, the current world economy is increasingly becoming integrated and interdependent; as a result, the relationship between business and society is becoming more complex. Use the Internet to research one (1) of the following..

Write the equation describe the dynamics of those employed : Consider now an economy where you need to search for a job. Let b be the function of people that do not have a job and are searching for one. Here active population and working age population do not coincide. Write the equation describe the dynamics ..

Health care reform affect on products : How will this affect how we market to them?

Identify a popular construct in criminal justice : Identify a popular construct in criminal justice or ciminiology, and create a survey (a minimum of eight Likert-scale questions) to measure that construct

Knowledge of the black-scholes option pricing model : Ricardo International would like you to demonstrate your knowledge of the Black-Scholes option pricing model by finding the call price of an U.S. call option with the following characteristics:

How can police officers reduce communication barriers : Keeping in mind that communication includes verbal and non-verbal communication such as body language and that communication barriers can exist between the police and the public, how can police officers reduce communication barriers with their com..

Calculate the price of a one-year european put option : Calculate the price of a one-year European put option on the stock with a strike price of $60.

Healthcare synthesis problems : What information or statistic you find either surprising or reasonable?

Write paper on the role of research in criminal justice : Write paper on the role of research in criminal justice

User Account

All Pages