Let S = $85, K =$80,r=8% (continuously compounded), T -0.5, and 8-0. Letu -1.3,0 -0.75, and...

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Question

business finance

Answer 1

Answer #1

Answer:

From the given data,

Value of Call P= $\Delta$ S+B

$\Delta$ =D=0.652406

B=-39.9601

S=85

P=0.652406*85+(-39.9601)

P=15.49441~15.494

option C is correct.

Answer 2

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