Solved: Black-scholes option pricing model related problem, Finance Basics

+44 141 628 6080
[email protected]

Black-scholes option pricing model related problem

Problem:

What is the value of a 9-month call with a strike price of $45 given the Black-Scholes Option Pricing Model and the following information?

Stock price: $48
Exercise price: $45
Time to expiration: .75
Risk-free rate : .05
N(d1): .718891
N(d2): .641713

Solution Preview :

Prepared by a verified Expert

Finance Basics: Black-scholes option pricing model related problem

Reference No:- TGS02059636

Now Priced at $20 (50% Discount)

Recommended (94%)

Rated (4.6/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Option pricing principles

Option pricing principles are now often used in corporate finance applications. It is common to look at equity in a corporation as an option.

Q : Incorporate the effect of the employee stock option

For your company (Dell, Inc), incorporate the effect of the Employee Stock Option (ESO) plan into the common equity valuation.

Q : How much is fethe equity worth

1) Using the Black-Scholes Option Pricing Model, how much is Fethe's equity worth?

Q : What role will the teacher have in the classroom

What commitment will you make to ensure that students' intellectual, emotional, and social needs are met?

Q : Black-scholes option pricing model related problem

What is the value of a 9-month call with a strike price of $45 given the Black-Scholes Option Pricing Model and the following information?

Q : Put-call parity to determine the value of put option

Use the put-call parity to determine the value of a Temex put option that also has a $45 strike price and six months until expiration.

Q : Develop a consensus model for the company

Teams work together using their worksheets on Marketing, Customer, and Business Strategy to develop a consensus model for their company.

Q : Differentiate the sexual response cycles of males and female

Differentiate the sexual response cycles of males and females. What are the differences between males and females, and what do they share in common?

Q : Describe an active monetary and fiscal policy

Select two subjects from the following list of topics and write a 1,050-word analysis:

1930753

Questions
Asked

3,689

Active Tutors

1434133

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Medication for postoperative nausea and vomiting

Question: Which medication for postoperative nausea and vomiting (PONV) is contraindicated for use in the pediatric population?

Child prescribed prednisone for exacerbation of asthma

Question: Which adverse reaction would the nurse monitor for in a child prescribed prednisone for exacerbation of asthma?

What if a parent of hispanc origin informs nurse of plans

Which action would the nurse perform if a parent of hispanc origin informs the nurse of plans to wean their 10-month-old child by giving anise tea

How health care reimbursement is delivered

The revenue cycle involves many steps, and each step has a critical role in how health care reimbursement is delivered.

How to improve overall health of elementary school children

According to Healthy People health indicators, which area would the nurse include to improve the overall health of elementary school children?

How would you instruct the patient to taper off clonazepam

How would you instruct the patient to taper off clonazepam? What other medication would you recommend for the patient for the treatment

How to prevent interference with an intravenous infusion

Which action would the nurse take in providing care for an 8-month-old infant restrained to prevent interference with an intravenous infusion?