What is the value of a call option with infinite time to


1. What is the value of a call option with infinite time to maturity and a strike price of $0? Use the parameters of the example: S0 = $80.50, rF = 1.77%, and σ = 50%.

2. Price a call option with a stock price of $80, a strike price of $75, 3 months to maturity, a 5% risk-free rate of return, and a standard deviation of 20% on the underlying stock.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the value of a call option with infinite time to
Reference No:- TGS01647367

Expected delivery within 24 Hours