Question: Please do in excel showing all the work 1)The exercise price on one of Flanagan Company's call options is $15, its exercise value is $22,
Please do in excel showing all the work
1)The exercise price on one of Flanagan Company's call options is $15, its exercise value is $22, and its time value is $5. What are the option's market value and the price of the stock?
2)Assume that you have been given the following information on Purcell Corporation's call options: Current stock price = $15 Time to maturity of option = 6 months Variance of stock return = 0.12 dl = 0.24495 d2 = 0.00000 Strike price of option = $15 Risk-free rate = 6% N(dl ) = 0.59675 N(d2 ) = 0.50000 According to the Black-Scholes option pricing model, what is the option's value?
3)The current price of a stock is $33, and the annual risk-free rate is 6%. A call option with a strike price of $32 and with 1 year until expiration has a current value of $6.56. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
