Question
You observe a premium of $4.65 for a call option on Birdwell Enterprises common stock, which is currently selling for $52. The strike price
You observe a premium of $4.65 for a call option on Birdwell Enterprises common stock, which is currently selling for $52. The strike price on the call option is $53. The option has four months to maturity. The stock pays no dividends. The current risk-free interest rate is 4.0%. What is the implied volatility of the stock?
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Introduction to Corporate Finance What Companies Do
Authors: John Graham, Scott Smart
3rd edition
9781111532611, 1111222282, 1111532613, 978-1111222284
