What is the value of a 6-month call with a strike price of $25 given the Black-Scholes option pricing model and the following information?
A)$0
B)$0.93
C)$1.06
D)$1.85
E)$2.14

Name: What is the value of a 6-month call with a strike price of $25 given the Black-Scholes option pricing model and the following information? A)$0 B)$0.93 C)$1.06 D)$1.85 E)$2.14
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Question

What is the value of a 6-month call with a strike price of $25 given the Black-Scholes option pricing model and the following information? 
A)$0 
B)$0.93 
C)$1.06 
D)$1.85 
E)$2.14

Quizplus · Accepted Answer

C = ($17.20 × 0.26016) - ($25 × 2.71828^-0.0375 ^{× 0.5} × 0.14456) = $0.93

What Is the Value of a 6-Month Call with a Strike