subject
Business, 11.03.2020 03:33 jboii11

An analyst wants to use the Black-Scholes model to value call options on the stock of Heath Corporation based on the following data: βˆ™ The price of the stock is $40. βˆ™ The strike price of the option is $40. βˆ™ The option matures in 3 months (t = 0.25). βˆ™ The standard deviation of the stock's returns is 0.40, and the variance is 0.16. βˆ™ The risk-free rate is 6%.Using the Black-Scholes model, what is the value of the call option?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 23:20
On october 2, 2016 starbucks corporation reported, on its form 10-k, the following (in millions): total assets $14,329.5 total stockholders' equity 5,890.7 total current liabilities 4,546.9 what did starbucks report as total liabilities on october 2, 2016? select one: a. $12,516.7 million b. $6,377.3 million c. $995.0 million d. $8,438.8 million e. none of the above
Answers: 2
question
Business, 22.06.2019 09:40
Wilson center is a private not-for-profit voluntary health and welfare entity. during 2017, it received unrestricted pledges of $638,000, 65 percent of which were payable in 2017, with the remainder payable in 2018 (for use in 2018). officials estimate that 14 percent of all pledges will be uncollectible. a. how much should wilson center report as contribution revenue for 2017? b. in addition, a local social worker, earning $20 per hour working for the state government, contributed 600 hours of time to wilson center at no charge. without these donated services, the organization would have hired an additional staff person. how should wilson center record the contributed service?
Answers: 2
question
Business, 22.06.2019 14:30
You hear your supervisor tell another supervisor that a fire drill will take place later today when the fire alarm sounds that afternoon you should
Answers: 1
question
Business, 22.06.2019 15:30
Susan is a 5th grade teacher and loves getting up every day and going to work to teach her students. this is an example of a. extrinsic value b. interests c. intrinsic value d. external value
Answers: 2
You know the right answer?
An analyst wants to use the Black-Scholes model to value call options on the stock of Heath Corporat...
Questions
question
Mathematics, 30.04.2021 19:50
question
Mathematics, 30.04.2021 19:50