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Use Black/Scholes formula to calculate the theoretical price of a call given the following info:                                                                                                       Stock Px – 66              Exercise...

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Finance

Use Black/Scholes formula to calculate the theoretical price ofa call given the followinginfo:                                                                                         

           

Stock Px –66             Exercise Px – 60        Variance – 0.4839       Std Dev ?

Int Rate – 5%            Time remaining – 219 days

  1. ln s/k

  1. (r + var/2) x sqrt (t)
  1. Std x (sqrt t)
  1. d1 =

  1. d2 =

  1. K x e –rt

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Use Black/Scholes formula to calculate the theoretical price ofa call given the followinginfo:                                                                                                    Stock Px –66             Exercise Px – 60        Variance – 0.4839       Std Dev ?Int Rate – 5%            Time remaining – 219 daysln s/k(r + var/2) x sqrt (t)Std x (sqrt t)d1 =d2 =K x e –rt

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