Question: Question 8 1 pts Assume the Black-Scholes framework. The current price of a stock is 115. The stock pays dividends continuously at a rate of

Question 8 1 pts Assume the Black-Scholes framework. The current price

Question 8 1 pts Assume the Black-Scholes framework. The current price of a stock is 115. The stock pays dividends continuously at a rate of 1% and has an expected annual return of 6%. The continuously- compounded risk-free rate of interest is 2%. The price of a 3-year, K-strike European call on this stock is 30.14. The price of a 3-year, K-strike European put on this stock is 45.68. You are given that (d) = 2.0837- N(d). Find the volatility of the stock. O 46.64% 0 44.03% O 38.80% O 36.19% O 41.42% Question 8 1 pts Assume the Black-Scholes framework. The current price of a stock is 115. The stock pays dividends continuously at a rate of 1% and has an expected annual return of 6%. The continuously- compounded risk-free rate of interest is 2%. The price of a 3-year, K-strike European call on this stock is 30.14. The price of a 3-year, K-strike European put on this stock is 45.68. You are given that (d) = 2.0837- N(d). Find the volatility of the stock. O 46.64% 0 44.03% O 38.80% O 36.19% O 41.42%

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