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Use black-scholes Formular: Call option purchased on JPMorgan Chase common stock Notional value: $3,000,000 Strike...

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Accounting

Use black-scholes Formular:

Call option purchased on JPMorgan Chase common stock

Notional value: $3,000,000

Strike price: $72 Expiry: 31 December 2016

Volatility: 20% p.a.

Risk-free rate: 1.15% p.a.

Current market price: $67

Dividend yield: 1.75% p.a.

Stock option price: calculation $3million 1-year call purchased on JPMorgan Chase stock

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