. Refer to the equation we discussed in Black & Scholes models. The stock price is currently trading for $40 and the cal

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answerhappygod
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. Refer to the equation we discussed in Black & Scholes models. The stock price is currently trading for $40 and the cal

Post by answerhappygod »

. Refer to the equation we discussed in Black & Scholes
models. The stock price is currently trading for $40 and the call
option has a strike price of $37. The expiration is 3 months and
volatility is the same as the average volatility of the market We
also know if the stock price goes up by $2 the value of the value
of call option goes up by $1.60. In this case the value of N(d1)
should be closer to:
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