What is the price of a $25 strike call? Assume S = $23.50, sigma = 0.24, r

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What is the price of a $25 strike call? Assume S = $23.50, sigma = 0.24, r = 0.055, the stock pays a 2.5% continuous dividend and the option expires in 45 days?

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Derivatives Markets

ISBN: 978-0321543080

4th edition

Authors: Rober L. Macdonald

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Posted Date: Jan 12, 2024 08:58 AM

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What is the price of a $25 strike call? Assume S = $23.50, sigma = 0.24, r

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To find the price of the call option we will use the BlackScholes model The BlackScholes model is as ... View the full answer

Derivatives Markets

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