Acall option with x 51 on a stock currently priced at s , Ask an Expert

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A call option with X = $51 on a stock currently priced at S = $54 is selling for $8. Using a volatility estimate of σ = 0.34, you find that N(d1) = 0.7311 and N(d2) = 0.6722. The risk-free interest rate is zero. Is the implied volatility based on the option price more or less than 0.25?

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Financial Management, Finance

Category:- Financial Management
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