You are given the following information about the stock of Company ABC: Share price $80 risk free

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You are given the following information about the stock of Company ABC:

Share price $80 risk free rate of interest is 6%, time to expiration is 6 months, annualised standard deviationis 0.5 and exercise price is $85.

Calculate the appropriate call value of the stock according to the Black-Scholes option pricing formula.

Calculate an appropriate put premium

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 978-0324597707

12th edition

Authors: Eugene F. Brigham, Joel F. Houston

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Posted Date: Jun 24, 2023 04:24 AM

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You are given the following information about the stock of Company ABC: Share price $80 risk free

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To calculate the call value using the BlackScholes option pricing formula we need the following inpu... View the full answer

Fundamentals of Financial Management

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