- The Current Stock Price Of Alcoco Is 65 And The Stock Does Not Pay Dividends The Instantaneous Risk Free Rate Of Retu 1 (15.34 KiB) Viewed 10 times
The current stock price of Alcoco is $65, and the stock does not pay dividends. The instantaneous risk-free rate of return is 7%. The instantaneous standard deviation of Alcoco's stockis 30% You want to purchase a put option on this stock with an exercise price of $70 and an expiration date 30 days from now. According to the Black Scholes OPM, you should hold shares of stock per 100 put options to hedge your risk. Assume 365 days in a year Multiple Choice 77 42 82 311