Southwest Airlines common stock currently sells for $57.77 per share, and the standard deviation of...
70.2K
Verified Solution
Link Copied!
Question
Finance
Southwest Airlines common stock currently sells for $57.77 per share, and the standard deviation of returns is 62.74%. A call option with a strike price of $48 is currently trading on the market. The option expires in 0.15 years, and the risk-free rate of return is 1.7%. Southwest does not pay a dividend. What is the vega (V) for this put option assuming a continuous model such as the Black- Scholes model? 4.9713 5.9832 11.1871 16.6156
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!
