The value of the call option using the black-Scholes model is calculated as $25.01. Calculate the...
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The value of the call option using the black-Scholes model is calculated as $25.01. Calculate the value of put option using the put call parity. The stock volatility is 0.5, time to expiration is 3 months, current price of the stock is $110 and strike price of the option is $90. The continuous compounding interest rate is 12%. The value of the call option using the black-Scholes model is calculated as $25.01. Calculate the value of put option using the put call parity. The stock volatility is 0.5, time to expiration is 3 months, current price of the stock is $110 and strike price of the option is $90. The continuous compounding interest rate is 12%.
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Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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