6 Use the Black-Scholes formula for the following stock: Time to expiration 6 months 10 points...
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6 Use the Black-Scholes formula for the following stock: Time to expiration 6 months 10 points Standard deviation 47% per year Exercise price $59 Stock price $59 Annual interest rate 4% 0 Dividend Recalculate the value of the call with the following changes: a. Time to expiration b. Standard deviation 3 months c. Exercise price d. Stock price e. Interest rate 20% per year $67 $67 6% Select each scenario independently. Note: Round your answers to 2 decimal places. > Answer is not complete. Value of the Call Option a. C falls to b. C falls to C. C falls to d. C rises to e. C rises to 6 Use the Black-Scholes formula for the following stock: Time to expiration 6 months 10 points Standard deviation 47% per year Exercise price $59 Stock price $59 Annual interest rate 4% 0 Dividend Recalculate the value of the call with the following changes: a. Time to expiration b. Standard deviation 3 months c. Exercise price d. Stock price e. Interest rate 20% per year $67 $67 6% Select each scenario independently. Note: Round your answers to 2 decimal places. > Answer is not complete. Value of the Call Option a. C falls to b. C falls to C. C falls to d. C rises to e. C rises to
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