Consider the following inputs to the BlackScholes option pricing model: These input values yield a call option
Question:
Consider the following inputs to the BlackScholes option pricing model:
These input values yield a call option price of $6.78 and a put option price of $1.03. Verify these prices from your own calculations.
Transcribed Image Text:
S = $65 K = $60 T= .25 year r = 5% σ = 25%
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To verify the call and put option prices using the BlackScholes option pricing model well use the pr...View the full answer
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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