The risk-free interest rate is 04 per month and the stocks


XYZ Corp. will pay a $2 per share dividend in 2 months. Its stock price currently is $74 per share. A call option on XYZ has an exercise price of $66 and 3-month time to expiration.

The risk-free interest rate is 0.4% per month, and the stock's volatility (standard deviation) = 13% per month. Find the pseudo-American option value.

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Financial Management: The risk-free interest rate is 04 per month and the stocks
Reference No:- TGS02856027

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