What is the put option premium given the following information?
$$\begin{array} { l l }
\text { Stack price } & \$ 26 \
\text { Strike price } & \$ 30 \
\text { Standard deviation } &35\%\
\text { Rigk-free rate }&1.3\% \
\text { Dividend yield } &0\%\
\text { Time (years) }&.25
\end{array}$$
A)$3.62
B)$4.27
C)$4.49
D)$4.69
E)$5.08

Question

What is the put option premium given the following information?
$$\begin{array} { l l } 
\text { Stack price } & \$ 26 \
\text { Strike price } & \$ 30 \
\text { Standard deviation } &35\%\
\text { Rigk-free rate }&1.3\% \
\text { Dividend yield } &0\%\
\text { Time (years) }&.25
\end{array}$$
A)$3.62
B)$4.27
C)$4.49
D)$4.69
E)$5.08

Quizplus · Accepted Answer

The put option premium can be calculated using the Black-Scholes option pricing model. Given the inputs, the calculated premium is approximately $4.49.

What Is the Put Option Premium Given the Following Information