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6. A call option on a non-dividend-paying stock has a market price of $2.50. The stock...

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Finance

6. A call option on a non-dividend-paying stock has a marketprice of $2.50. The stock price is $15, the exercise price is $13,the time to maturity is three months, and the risk-free interestrate is 5% per annum. What is the implied volatility?

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The implied volatility is 395Use a BlackScholes Calculator to find the implied volatility ofthe stock with the    See Answer
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6. A call option on a non-dividend-paying stock has a marketprice of $2.50. The stock price is $15, the exercise price is $13,the time to maturity is three months, and the risk-free interestrate is 5% per annum. What is the implied volatility?

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