Using the Black-Scholes formula to find the value of a call option on the following stock? |

Using the Black-Scholes formula to find the value of a call option on the following stock?

Use the Black-Scholes formula to find the value of a call option on the following stock:

Time to expiration6 months
Standard deviation50% per year
Exercise price$50
Stock price$50
Interest rate10%

please help….

full marks to be given to anyone with the right explanation and answer. thankyou

8.2381

This entry was posted on Thursday, August 27th, 2009 at 9:54 pm and is filed under call option. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Using the Black-Scholes formula to find the value of a call option on the following stock?”

Dna on August 28th, 2009 at 3:35 am

8.2381
References :
http://en.wikipedia.org/wiki/Black%E2%80%93Scholes#Black.E2.80.93Scholes_formula

http://www.blobek.com/black-scholes.html

http://www.m-forums.com/stocks-bonds-mutual-funds/