What is the value of a 3-month call option with a strike price of $25 given the Black-Scholes option pricing model and the following information?
A)$3.38
B)$3.42
C)$3.68
D)$4.27
E)$5.39

Name: What is the value of a 3-month call option with a strike price of $25 given the Black-Scholes option pricing model and the following information? A)$3.38 B)$3.42 C)$3.68 D)$4.27 E)$5.39
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Question

What is the value of a 3-month call option with a strike price of $25 given the Black-Scholes option pricing model and the following information? 
A)$3.38 
B)$3.42 
C)$3.68 
D)$4.27 
E)$5.39

Quizplus · Accepted Answer

C = ($29.30 × 0.74699) - ($25 × 2.71828^-0.04 ^{× 0.25} × 0.66642) = $5.39

What Is the Value of a 3-Month Call Option with a Strike