Taggart Transcontinental's stock has a volatility of 25% and a current stock price of $40 per share.

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Taggart Transcontinental's stock has a volatility of 25% and a current stock price of $40 per share. Taggart pays no dividends. The risk-free interest rate is 4%. The Black-Scholes value of a one-year, at-the-money call option on Taggart stock is closest to:

A. $4.75

B. $1.45

C. $3.15

D. $9.50

Posted Date: Oct 19, 2021 06:26 AM

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Taggart Transcontinental's stock has a volatility of 25% and a current stock price of $40 per share.

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At the money call option means strike price equals ... View the full answer

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