Calculate the theoretical put option price

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Reference no: EM131087841

Given the following information, complete the problems #6 and #7. Stock Strike Days to Maturity Risk Free Standard Variance Price By Days in Year Rate Deviation of Return $22 $24 120/365 0.08 0.25 0.0625 42 40 50/365 .10 .23

1) Use the Black-Scholes Model to calculate the theoretical Call option price.

2) Use the Black-Scholes Model to calculate the theoretical Put option price. Comment

Reference no: EM131087841

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