Question: post all the steps Let S = $57, s = 26%, r = 4%, and d = 2.5% (continuously compounded). Compute the Black-Scholes price for
post all the steps
Let S = $57, s = 26%, r = 4%, and d = 2.5% (continuously compounded). Compute the Black-Scholes price for a $50-strike European call option with 3 months until expiration.
| a. | $0.53 | |
| b. | $7.53 | |
| c. | $7.00 | |
| d. | $7.89 | |
| e. | $7.68 |
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