The stock of Nugents Nougats currently sells for $54 and has an annual standard deviation of 50 percent. The stock has a dividend yield of 3.2 percent and the risk - free rate is 6 percent. What is the value of a call option on the stock with a strike price of $50 and 40 days to expiration?
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- Give typing answer with explanation and conclusion The stock of Nugent Nougats currently sells for $46 and has an annual standard deviation of 47 percent. The stock has a dividend yield of 5.6 percent and the risk-free rate is 5.6 percent. What is the value of a call option on the stock with a strike price of $42 and 44 days to expiration?The stock of Nugents Nougats currently sells for $50 and has an annual standard deviation of 51 percent. The stock has a dividend yield of 3.1 percent and the risk-free rate is 4.7 percent. What is the value of a call option on the stock with a strike price of $46 and 77 days to expiration? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Value of a call optionA stock with an annual standard deviation of 18 percent currently sells for $68. The risk-free rate is 3.1 percent. What is the value of a put option with a strike price of $75 and 62 days to expiration?
- Suppose that currently, stock BVC is trading at $100 per share. A put option with a strike price of $120 that expires in one year is selling at $11.12. What is the profit to a trader who buys this put option, assuming that in one year the stock price of BVC is $125The stocks of Cee Mobile Limited is currently trading at $73 each. The call option on the company’s stock has an exercise price of $70, with fifty (50) days remaining to expiration. It is assumed that the yield on treasury bills is currently 2%, while the volatility of the stock price is estimated as being 35%. a. Using the Black-Scholes-Merton (BSM) model, calculate the value of the Call option, given the above parameters. Show all relevant workings. b. Of the value computed, how much is the intrinsic value and the time value of the Call option? c. Using the BSM model and the information given above, calculate the value of the Put option on the stock, with a similar strike price and days to expiration.A stock is currently priced at $63 and has an annual standard deviation of 43 percent. The dividend yield of the stock is 2 percent and the risk-free rate is 4 percent. What is the value of a call option on the stock with a strike price of $60 and 45 days to expiration? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.)
- The current price of a stock is $33, and the annual risk-free rate is 6%. Acall option with a strike price of $32 and with 1 year until expiration has acurrent value of $6.56. What is the value of a put option written on the stockwith the same exercise price and expiration date as the call option?A stock trades for $46 per share. A call option on that stock has a strike price of $53 and an expiration date six months in the future. The volatility of the stock's returns is 45%, and the risk-free rate is 3%. What is the Black and Scholes value of this option? The Black and Scholes value of this call option is (Round to the nearest cent.)A stock is currently selling for $39. Over the next two periods, the stock will move up by a factor of 1.29 or move down by a factor of 0.53 each period. A call option with a strick price of $50 is available. If the risk-free rate of interest is 3.2 percent per period, what is the value of the call option?
- a non‐dividend paying stock is priced at $17.35 today. The current interest rate is 3.0% per annum. A 3‐month put option with an exercise price of $20.00 is available. What is the lower bound of the price of this put option?A stock is currently selling for $59. Over the next two periods, the stock will move up by a factor of 1.15 or down by a factor of .87 each period. A call option with a strike price of $60 is available. If the risk-free rate of interest is 2.5 percent per period, what is the value of the call option?A.K. Scott’s stock is selling for $37 a share. A 3-month call on this stock with a strike price of $38 is priced at $2. Risk-free assets are currently returning 0.28 percent per month. a) What should be the price of a 3-month put option on this stock with a strike price of $38? b) Which of the two options is currently in the money and does that accord with your conclusions about their relative prices?