Black scholes formula


Historical data suggest the standard deviation of an all-equity strategy is about 5.5% per month. Suppose the risk free rate is now 1% per month and market volatily is at its historical level. What would be a fair monthly fee to a perfect market timer, according to the Black Scholes formula?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Black scholes formula
Reference No:- TGS049936

Expected delivery within 24 Hours