Assume black-scholesnbspthe continuously compounded


Assume Black-Scholes:

For a 3-month at-the-money European call option on a stock, you are given:

i. The continuously compounded risk-free interest rate is equal to the rate of dividend continuously being paid out by the stock.

ii. The elasticity of the option is 8.854

Determine the volatility of the stock

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Financial Management: Assume black-scholesnbspthe continuously compounded
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