Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a stock with an annual standard deviation of 25 pe

A stock with an annual standard deviation of 25 percent currently sells for $75. The...

60.1K

Verified Solution

Question

Accounting

image
A stock with an annual standard deviation of 25 percent currently sells for $75. The risk-free rate is 3.8 percent. What is the value of a put option with a strike price of $80 and 76 days to expiration? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A corporate bond with 6.75 percent coupon has ten years left to maturity. It has had...

Finance
Q

1) The Bay of Fundy-Passamaquoddy area near the border between Maine and New Brunswick/Nova Scotia in...

Mechanical Engineering
Q

16. A U.S. manager who is negotiating in China has difficulty getting his Chinese counterparts to...

General Management
Q

In Kingdom Animalia motility and will always be found A chemisynthesis B peptidoglycan C heterotrophy

Biology
Q

53 cos 0 sin 0 2 cos 0 0 54 tan sin 0 sin 0...

Calculus
Q

The table shows the number of class periods missed over the last 10 courses by...

Algebra
Q

Teri goes shopping for some new clothes and then out to lunch with a friend....

Algebra
Q

Recording and Reporting Warranties During Year 1, Ward Company introduced a new product carrying...

Accounting
Q

expects to sell 25% of its merchandise for cash. Of sales on account, 70% are...

Accounting
Q

. JJ Corp. had taxable income of $7,850 in the current year. The amount of...

Accounting
Q

The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for...

Accounting
Q

Pennock Inc. has convertible preferred stock outstanding. To compute the diluted EPS, it must adjust...

Accounting