Instantaneous standard deviation, Financial Accounting

The current stock price of International Wood is $69 and the stock does not pay dividends. The instantaneous risk free rate of return is 10%. The instantaneous standard deviation of International Wood's stock is 25%. You wish to purchase a call option on this stock with an exercise price of $70 and expiration date 73 days from now. Using the Black-Scholes Options Pricing Model, how much should the call option be worth today?

The current stock price of International Wood is $69 and the stock does not pay dividends. The instantaneous risk free rate of return is 10%. The instantaneous standard deviation of International Wood's stock is 25%. You wish to purchase a put option on this stock with an exercise price of $70 and expiration date 73 days from now. Using the Black-Scholes Options Pricing Model, how much should the put option be worth today?

Posted Date: 4/13/2013 2:56:38 AM | Location : United States







Related Discussions:- Instantaneous standard deviation, Assignment Help, Ask Question on Instantaneous standard deviation, Get Answer, Expert's Help, Instantaneous standard deviation Discussions

Write discussion on Instantaneous standard deviation
Your posts are moderated
Related Questions
Q. Corporate Enterprise group? In order to have better and systematic participation of labour in management for improvement in working of Railway system and appropriate changes


State the relationship between return and risk This relationship between return and risk has significant implications for setting financial objectives for a business. Owners wil

Money demand in an economy in which no interest is paid on money is M d /P = 500 + 0.2Y - 1000i (a) Suppose that P = 100, Y = 1000, and i = 0.10. Find real money demand, nomi

Q. If a corporation declares a 10% stock dividend on its common stock, the account to be debited on the date of declaration is a. Common Stock Dividends Distributable. b. Common St

Presented below are four independent situations which you as a Manager Trainee employed with Your Company have been asked to evaluate. Evaluate each situation based on what each re

Simon Corporation's bonds have 12 years left over to maturity. Interest is paid yearly, the bonds have a $1,000 par value, and the coupon interest rate is 11.5%. The bonds have a y