Find a call option and put option for a publicly traded, Ask an Expert

Finance

Find a call option and put option for a publicly traded company that have the same expiration date and exercise price.

(a) Calculate the price of the call and put options using the Black-Sholes pricing model. Assume r = 1% and σ = .20

(b) Compare the results of (a) to the midpoint of the bid-ask spread of the actual option prices. What is the most likely answer why the results differ?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91379761

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