Q13. A stock is trading at $95. The exercise price of its call option is 11% below the trading price of the stock. The e

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answerhappygod
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Q13. A stock is trading at $95. The exercise price of its call option is 11% below the trading price of the stock. The e

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Q13. A stock is trading at $95. The exercise price of its call
option is 11% below the trading price of the stock. The expiration
is six months. The variance of the stock return is .0144. The
annual interest rate is 10%. There is no dividend involved. In this
case, according to B&S model, the price of the call option
should be $ …………….
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