Sam has been granted options on 50,000 shares. The stock is currently trading at $17 a share and the options are at the money. the volatility of the...

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Sam has been granted options on 50,000 shares. The stock is currently trading at $17 a share and the options are at the money. the volatility of the stock returns averages 16 percent. the options mature in 2 years and the risk-free rate is 3.45 percent. N(d1) is .662055 and N(d2) is .576052. Given this information, what is the value of a call option on one share of stock?

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Sam has been granted options on 50,000 shares. The stock is currently trading at $17 a share and the options are at the money. the volatility of the...

  • Written in: 17-Oct-2019
  • Paper ID: 339847
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DATE ANSWERED

Oct 17, 2019

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