The current price of a stock is $100.What is the Black-Scholes model price of a six-month put option at strike $98,given an interest rate of 2% and a dividend rate of 1%? The volatility is 45%.
A) $11.02
B) $11.22
C) $11.68
D) $11.73
Correct Answer:
Verified
Q1: A stock is currently trading at
Q2: A stock is currently trading at
Q3: A stock is currently trading at
Q4: The current price of a stock is
Q5: The current price of a stock is
Q7: A put option can be replicated
Q8: The implied volatility of an option
A)Is the
Q9: Which of the following quantities associated with
Q10: Which of the following is not an
Q11: Let
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents