What is the call option premium given the following information?
$\begin{array}{lrr}
\text { Stock price } &\$45.00\
\text { Strike price } &\$40.00\
\text { Volatility } &35\%\
\text {Dividend Yield } &0\
\text { Time (years) } &.50\
\text { Risk-free Rate } &3.50\%\
\end{array}$

A)$4.63
B)$5.28
C)$6.39
D)$7.60
E)$8.66

Question

What is the call option premium given the following information?
$\begin{array}{lrr}
  \text { Stock price } &\$45.00\
 \text { Strike price } &\$40.00\
 \text { Volatility } &35\%\
 \text {Dividend Yield  } &0\
 \text { Time (years) } &.50\
 \text { Risk-free Rate } &3.50\%\
\end{array}$

A)$4.63
B)$5.28
C)$6.39
D)$7.60
E)$8.66

Quizplus · Accepted Answer

The Answer of What is the call option premium given the following information?
$\begin{array}{lrr}
  \text { Stock price } &\$45.00\
 \text { Strike price } &\$40.00\
 \text { Volatility } &35\%\
 \text {Dividend Yield  } &0\
 \text { Time (years) } &.50\
 \text { Risk-free Rate } &3.50\%\
\end{array}$

A)$4.63
B)$5.28
C)$6.39
D)$7.60
E)$8.66

What Is the Call Option Premium Given the Following Information