Calculate the price of a 4-month european call option on a, Ask an Expert

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Calculate the price of a 4-month European call option on a dividend-paying stock with a strike price of $30 when the current stock price is $34, the risk-free rate is 6% per annum and the volatility is 40% per annum. A dividend of $2.00 is expected in 2 months. Use Black-Schools formula.

A) $3.05

B) $3.65

C) $4.32

D) $5.02

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91398528

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