A call option matures in six monthsthe risk-free rate is 54


A call option matures in six months. The underlying stock price is $77, and the stock’s return has a standard deviation of 27 percent per year. The risk-free rate is 5.4 percent per year, compounded continuously. If the exercise price is $0, what is the price of the call option? (Omit the "$" sign in your response.)

Price of the call option $

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A call option matures in six monthsthe risk-free rate is 54
Reference No:- TGS02356978

Expected delivery within 24 Hours