A stock trades for 65 per share a call option on that stock, Ask an Expert

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A stock trades for $65 per share. A call option on that stock has a strike price of $60 and an expiration date 6 months in the future. The volatility of the stock's return is 25%, and the risk-free rate is 3%.

a. What is the Black and Scholes value of this option?

b. What should be the value of a put option with the same strike price and the same time to maturity?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92835200

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