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  3. (1 point) a stock currently trades at $44, and the

(1 point) A stock currently trades at $44, and the volatility of its return is...

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Accounting

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(1 point) A stock currently trades at $44, and the volatility of its return is 7%. The continuously compounded rate of interest is 3%. Consider a call option struck at $49, with 90 days to expiration (recall that there are 251 trading days in one year). a) What is the price of the option (rounded to the nearest cent)? Answer = $ b) What is the option's delta (rounded to four decimal places)? Answer = c) Use your answer from (b) to estimate the value of the option tomorrow, assuming the stock is trading at $45.25 at that time? Answer = $ d) What is the exact value of the option tomorrow, assuming the stock is trading at $45.25 at that time? Answer = $ [Note: Use software to compute the values of the normal CDF, not the table.]

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