Black-scholes model to value put options on the stock

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Reference no: EM131545141

An analyst is interested in using the Black-Scholes model to value put options on the stock of Marble LTD. The analyst has accumulated the following information: the price of the stock is $28. The strike price is $22. The option matures in 3 months. The standard deviation of the stock’s returns is 0.45. The risk-free rate is 3%. Using the Black-Scholes model, what is the value of the put option?

Reference no: EM131545141

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