As of May 18, 2022, a call of GOOGL at the money with a strike of $2,250

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As of May 18, 2022, a call of GOOGL at the money with a strike of $2,250 and expiration on November 18 of the same year sold for $282. The applicable volatility (IV) is 36%; the risk-free rate is 1.52%.

Calculate the theoretical price using Black & Scholes and compare it to the actual premium.

Related Book For answer-question

Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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Posted Date: Apr 03, 2023 04:45 AM

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As of May 18, 2022, a call of GOOGL at the money with a strike of $2,250

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Solution Using the BlackScholes formula the theoretical price of the call option can be calculated a... View the full answer

Introduction To Corporate Finance

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