What is the value of a 6-month put with a strike price of $27.25 given the Black-Scholes option pricing model and the following information?
A)$4.71
B)$4.88
C)$5.24
D)$5.64
E)$6.62

Name: What is the value of a 6-month put with a strike price of $27.25 given the Black-Scholes option pricing model and the following information? A)$4.71 B)$4.88 C)$5.24 D)$5.64 E)$6.62
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Question

What is the value of a 6-month put with a strike price of $27.25 given the Black-Scholes option pricing model and the following information? 
A)$4.71 
B)$4.88 
C)$5.24 
D)$5.64 
E)$6.62

Quizplus · Accepted Answer

P = ($27.25 × 2.71828^-0.035 ^{× 0.5}) + $1.46106 - $22.60 = $5.64

What Is the Value of a 6-Month Put with a Strike