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The current stock price of Howard & Howard is $64, and the stock does not pay dividends. The instantaneous risk-free rate of return is 5%. The instantaneous standard deviation of H&H's stock is 20%. You want to purchase a call option on this stock with an exercise price of $55 and an expiration date 73 days from now.

Using the Black-Scholes OPM, the call option should be worth __________ today.

$9.26

$.01

$9.62

$.08

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92401725

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