Honeywell does not pay a dividend and its stock has a volatility of 28% and a current

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Honeywell does not pay a dividend and its stock has a volatility of 28% and a current stock price of $70 per share. The risk-free interest is 5%.

Determine the Black-Scholes value of a one-year, at-the-money call option on Honeywell's stock. (Please show work with formulas and Z-Tables. The value will likely be different than if you use an Excel).

Related Book For answer-question

Financial Reporting And Analysis

ISBN: 9781260247848

8th Edition

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

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Posted Date: Sep 03, 2023 08:14 AM

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Honeywell does not pay a dividend and its stock has a volatility of 28% and a current

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Financial Reporting And Analysis

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