Question: You will definitely be getting a thumbs up The value of a stock is currently $1000. A 1-year call option written on the stock has

You will definitely be getting a thumbs up The value of

You will definitely be getting a thumbs up

The value of a stock is currently $1000. A 1-year call option written on the stock has a strike price of $1050. The volatility of the index returns is 30% per annum. The risk-free rate is 3% per annum continuously compounded. If the index has a dividend yield of 5%, what is the B-S call price? Answer: X The correct answer is: 86.64

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