The black-scholes model, Find the Black-Scholes model price

The black-scholes model

Assignment Help Financial Management

Reference no: EM13835282

The Black-Scholes Model

Find the Black-Scholes model price for a call on SilGrah Stock, give that the stocks are currently traded at $40, the strike price of the call is $40, the time to expiration is 3 months, the risk free rate is 5% per annum, and the standard deviation, \sigma, is 0.25. The stock does not pay dividend. (Using the cumulative standard normal distribution table. Please show your steps)

Reference no: EM13835282

Questions Cloud

Why do you think ethics and fairness are still problems : Then, discuss the principle of fairness remembering that what may be fair to you is unfair to someone else and vice versa. As organizations have not really changed over time, why do you think ethics and fairness are still problems

Determine an appropriate punishment : Conduct a bit more research in the online library related to this event involving Edward Snowden and the U.S. government-see what else you can discover about the event to determine an appropriate punishment, if any, for Snowden's conduct. Include ..

Working capital cash flow : Cool Water Inc. sells bottled water. The firm keeps in inventory plastic bottles at 12% of the monthly projected sales. These plastic bottles cost $0.005 each. The monthly sales for the first four months of the coming year are as follows, What is the..

Netshell is a video streaming company based on amazon : Netshell is a video streaming company based on Amazon's cloud computing platform. At the beginning of every year, Netshell has to decide how much daily streaming capacity (in terms of bytes of data) they want from Amazon. On average, Amazon charges $..

The black-scholes model : Find the Black-Scholes model price for a call on SilGrah Stock, give that the stocks are currently traded at $40, the strike price of the call is $40, the time to expiration is 3 months, the risk free rate is 5% per annum, and the standard deviation,..

Somerset furniture company global supply chain : Somerset Furniture Company's Global Supply Chain The Somerset Furniture Company was founded in 1957 in Randolph County, Virginia. It traditionally has manufactured large, medium-priced, ornate residential wood furniture such as bedroom cabinets and c..

Find all of the crossover quantities : A company wants to select the most economical site for a new factory. Find all of the crossover quantities

Further analysis for discussion on topic : Summarize your topic for the class, add a Biblical example, and offer further analysis for discussion on your topic. Your review must be 300-500 words, and you must reference at least 2 peer-reviewed sources and include 1 Biblical integration. You..

Describe the theory of endosymbiosis : The mitochondria and chloroplast are thought to have once been free-living prokaryotes that were engulfed by an early eukaryote and incorporated into the functioning of that cell. For this discussion, describe the theory of endosymbiosis in your o..

User Account

All Pages