Calculate the price of a one year call option on this stock, Financial Management

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Calculate the price of a one year call option on this stock

1. The price of United Carbon stock is $200. The standard deviation of company returns is 22.3 percent per year and the risk-free rate is 5 percent per year. Calculate the price of a one year call option on this stock that has a striking price of $180.

2. Using the data from Problem 1, calculate the expected price on a United Carbon put with K = $180 and T = one year.

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Financial Management: Calculate the price of a one year call option on this stock

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Financial Management: Calculate the price of a one year call option on this stock

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