What is the value of a call option on the stock

Assignment Help Financial Management

Reference no: EM13934857

A stock is currently priced at $64 and has an annual standard deviation of 44 percent. The dividend yield of the stock is 3.1 percent, and the risk-free rate is 6.1 percent. What is the value of a call option on the stock with a strike price of $61 and 47 days to expiration?

Reference no: EM13934857

Questions Cloud

Why is insider trading considered both illegal and unethical : Why is insider trading considered both illegal and unethical?

Calculate net income treating the amount : Calculate net income treating the amount of over applied overhead as immaterial and assigning it to Cost of Goods Sold.

Consistent with options characteristics : Which of the following statements is not consistent with options characteristics?

Design a relational database to store information : Create the following queries, including at least the indicated fields:

What is the value of a call option on the stock : A stock is currently priced at $64 and has an annual standard deviation of 44 percent. The dividend yield of the stock is 3.1 percent, and the risk-free rate is 6.1 percent. What is the value of a call option on the stock with a strike price of $61 a..

Explain the importance of continuing education : Create a 10- to 12-slide Microsoft PowerPoint presentation that addresses the following: Explain the importance of continuing education. Using the company selected in Week One, describe the support it provides its employees for continuing education

Elaborate on the determinants of beta : Explicate beta. That is, define it and discuss the three different cases. Elaborate on the determinants of beta. Explicate the concept of risk in Finance. How is value affected by risk? Does anything else affects value? Explain. Talk on opportunity c..

What characterizes a deficiency in zinc : inc is a metallic element which exists in micro-quantaties in the human body. However, deficiencies in zinc have been linked to a host of different diseases. What characterizes a deficiency in zinc?

Average collection period and average payment period : You know the following. ATO, ITO and FATO are 2, 6, and 2.5 respectively while for the industry they are 4.4, 19 and 4 respectively. The current ratio and quick ratio are 1 and 1.5 for the firm and 2.3 and 2.0 for the industry respectively. The avera..

User Account

All Pages