Question: Use the Black Scholes model to compute the theoretical value of a European call option on a non dividend paying share with the following characteristics:
Use the Black Scholes model to compute the theoretical value of a European call option on a non dividend paying share with the following characteristics: Current share price: $25.53 Exercise price: $27 Time until expiration: 57 days Rf = 1.5 % = 17 % b. Use the put call parity relationship to calculate the price of a European put option with the same exercise price and expiration date as the above call
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