The current stock price of national paper is 69 and the, Ask an Expert

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The current stock price of National Paper is $69, and the stock does not pay dividends. The instantaneous risk-free rate of return is 10%. The instantaneous standard deviation of National Paper's stock is 25%. You want to purchase a call option on this stock with an exercise price of $70 and an expiration date 73 days from now. Using the Black-Scholes OPM, the call option should be worth __________ today.

$2.50

$3.50

$2.94

$3.26

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92401734

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