Given the following data stock price 50 exercise price 45


Given the following data: Stock price = $50; Exercise price = $45; Risk-free rate = 6%; variance = 0.2 ; Expiration = 3 months. Calculate value of a European call option: [Use Black-Scholes Formula]. Please show step by step so I can understand how to do the problem myself.

A) $7.62

B) $7.90

C) $5.00

D) None of the above

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Given the following data stock price 50 exercise price 45
Reference No:- TGS01164748

Expected delivery within 24 Hours