The value of this option as calculated by black-scholes

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1. Jason purchased a six-month put on ABC stock at a cost of $100. The Strike was $15. At what market price does Jason just break-even on this investment? Ignore transaction costs ans taxes A) $15 B) $16 C)$14 D) Cannot be determined from the infromation provided

Explain step by step please

2. Nowel Inc. stock is currently priced at $42. the present value of the strike price of a call option on this stock is $44. Probability one, as calculated by the Black Scholes option pricing model is .6541; probability 2 is .3722. The value of this option as calculated by Black-Scholes is

A) $(2.00) B) $11.10 C) $2.000 D) $10.71

Reference no: EM132059580

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