An analyst wants to use the black-scholes model to value, Ask an Expert

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An analyst wants to use the Black-Scholes model to value call options on the stock of Ledbetter Inc. based on the following data:

The price of the stock is $45.

The strike price of the option is $50.

The option matures in 12 months.

The standard deviation of the stock’s returns is 0.50, and the variance is 0.25.

The risk-free rate is 5%.

Using the Black-Scholes model, what is the value of the put option?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91784872

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