The risk-free interest rate is 08 per month and the stocks


XYZ Corp. will pay a $2 per share dividend in 2 months. Its stock price currently is $86 per share. A call option on XYZ has an exercise price of $78 and 3-month time to expiration. The risk-free interest rate is 0.8% per month, and the stock's volatility (standard deviation) = 22% per month. Find the pseudo-American option value. Pseudo-American option value $

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The risk-free interest rate is 08 per month and the stocks
Reference No:- TGS02343181

Expected delivery within 24 Hours