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Posted: **Tue Jan 18, 2022 12:58 pm**

: A Non Dividend Paying Stock Is Currently Trading At Usd 45 And Has An Expected Return Of 10 Per Year Using The Black S 1 (59.79 KiB) Viewed 38 times

: A Non Dividend Paying Stock Is Currently Trading At Usd 45 And Has An Expected Return Of 10 Per Year Using The Black S 2 (59.79 KiB) Viewed 38 times

A non-dividend paying stock is currently trading at USD 45 and has an expected return of 10% per year. Using the Black-Scholes-Merton (BSM) model, what is the value of 6-months, European-style Put option on the stock, if the parameters used in the model are: So=45, K=40, r=0.1, volatility=0.2? O $0.56 O $3.59 O $0.34 O $4.00