Consider the following inputs to the Black-Scholes option pricing model: These input values yield a call option

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Consider the following inputs to the Black-Scholes option pricing model:

S = $65 K = $60 T= .25 year r = 5% = 25%

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.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Question Posted: Dec 31, 2023 10:51 AM

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Consider the following inputs to the Black-Scholes option pricing model: These input values yield a call option

Question:

S = $65 K = $60 T= .25 year r = 5% σ = 25%

Step by Step Answer:

To verify the call and put option prices using the BlackScholes option pricing model well use the pr...View the full answer

Fundamentals Of Investments Valuation And Management

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