Note that you can use the Black-Scholes formula to calculate the call option premium as a percentage

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Note that you can use the Black-Scholes formula to calculate the call option premium as a percentage of the exercise price in terms of S/X:

where

Implement this in a spreadsheet.

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Financial Modeling

ISBN: 9780262027281

4th Edition

Authors: Simon Benninga

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Question Posted: Dec 29, 2020 12:26 AM

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Note that you can use the Black-Scholes formula to calculate the call option premium as a percentage

Question:

C=SN(d))-Xe"T N(d»)→는=을N( C S -N(d)-eN(d2) X X

Step by Step Answer:

Lets create a stepbystep guide to implement the BlackScholes formula for a call option premium in a spreadsheet such as Microsoft Excel or Google Shee...View the full answer

Financial Modeling

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