Question

Under the black scholes model _is the value the following call option for the following data:stock price_Rs 210; strike price _Rs220 time to expiration _167 days; risk free interest rate _10% variance of annual stock return _20%

Answer 1

Answer:

Next, I’ll tell you a secret. Actually it’s not really a

secret but it’s something not many people would know about.

It’s the kind of thing that starts out with the phrase, “I’m not

superstitious but…” Every time I go to Hawaii I wear an

amulet, a necklace around my neck. Even when my son went

on vacation to Hawaii, I gave it to him and told him to wear

it while he was in Hawaii. Where did I get this amulet? I

went to Hawaii in 1999 as the guest speaker for the

Hongwanji’s Buddhist Study Center’s ten-day annual

Summer Session in Honolulu. Every weekday over a two-

week period I spoke to a group of about 40 people who had

signed up for this unique lengthy seminar.