1 pts John is learning to calculate the value of an option using the Black Scholes Model. He is evaluating an option on

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

1 pts John is learning to calculate the value of an option using the Black Scholes Model. He is evaluating an option on

Post by answerhappygod »

1 Pts John Is Learning To Calculate The Value Of An Option Using The Black Scholes Model He Is Evaluating An Option On 1
1 Pts John Is Learning To Calculate The Value Of An Option Using The Black Scholes Model He Is Evaluating An Option On 1 (25.45 KiB) Viewed 47 times
1 Pts John Is Learning To Calculate The Value Of An Option Using The Black Scholes Model He Is Evaluating An Option On 2
1 Pts John Is Learning To Calculate The Value Of An Option Using The Black Scholes Model He Is Evaluating An Option On 2 (25.45 KiB) Viewed 47 times
1 pts John is learning to calculate the value of an option using the Black Scholes Model. He is evaluating an option on NFLX with a strike price of $543 and the expiration date is 72 days from today. The underlying stock (NFLX) is trading at $518 today and the risk-free rate is 5%. The volatility of NFLX stocks is 0.22. He knows that the first step is to calculate d1. What is the value of d1 for this option? Hint: Remember you must plug the days on an annual basis in the formula (ie. 35 days = 35/365 = 0.0959 years) Please round your answer to the nearest two decimals if needed Click on the arrow next to the file below. Next, create a new sheet in the Respondus LockDown Browser spreadsheet. You can use this blank spreadsheet to calculate the answer. Make the column you are using as wide as possible. Otherwise, you might be seeing only the last decimals. Click to open:
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply