Assume that you have been given the following information on Fiore Industries: Using the BlackScholes Option Pricing
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Using the BlackScholes Option Pricing Model, what is the value of the option?
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Current stock price = $16 Time until expiration of option = 6 months Variance of stock price = 0.12 Exercise price of option = $16 Risk-free rate = 8% d, = 0.28577 N(d,) = 0.61247 d, = 0.04082 N(d.) = 0.51628
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P 16 X 16 t 05 r RF 008 2 012 d 1 028577 d 2 004082 Nd ...View the full answer
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Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
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