What is the value of a 9-month call with a strike price of


What is the value of a 9-month call with a strike price of $55 given the Black-Scholes option pricing model and the following information?

Stock price $61

Risk-free rate 5 percent

Standard deviation 42 percent

N(d1) .715535

N(d2) .581564

a. $32.36

b. $47.47

c. $19.42

d. $56.10

e. $12.84

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the value of a 9-month call with a strike price of
Reference No:- TGS02152910

Expected delivery within 24 Hours