The following information is given about options on the stock of a certain company.
S 0 = 23 X = 20
r c = 0.09 T = 0.5
$\sigma$ 2 = 0.15
No dividends are expected.
Use this information to answer questions 1 through 8.
-If the actual call price is 3.79,the implied standard deviation is
A)0.25
B)greater than 0.25
C)less than 0.25
D)infinite
E)none of the above

Question

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The Answer of The following information is given about options on the stock of a certain company.
S 0 = 23 X = 20
r c = 0.09 T = 0.5
$\sigma$ 2 = 0.15
No dividends are expected.
Use this information to answer questions 1 through 8.
-If the actual call price is 3.79,the implied standard deviation is
A)0.25
B)greater than 0.25
C)less than 0.25
D)infinite
E)none of the above

The Following Information Is Given About Options on the Stock σ\sigmaσ

The Following Information Is Given About Options on the Stock $\sigma$