Question: Find the That unknown variable, 5 variables (6 if the company pays cash dividends) that go into the pricing of stock options. Of those variables,
Find the That unknown variable, 5 variables (6 if the company pays cash dividends) that go into the pricing of stock options. Of those variables, only 1 is unknown.
Risk-free rat eof interest
Volatility of the underlying stock price
Time to Expiration
Price of the underlying stock
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