Black - scholes option pricingconsider the fin 332 stock, Ask an Expert

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Black - Scholes Option Pricing

Consider the Fin 332 stock trading at a price of $70. Analysis of Fin 332’s recent returns reveal that Fin 332 has an annualized standard deviation of 0.4. The current risk – free rate of interest is 6 percent per year.

Using the Black- Scholes option model what is the price of a European call option written on fin 332 with a $75 striking price that expire in 180 days?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92860662

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