Build a model-ch 08 p08

Fall 1, 2012                                                             Chapter 8.  Ch 08 P08 Build a Model                                             Except for charts and answers that must be written, only Excel formulas that use cell references or functions will be accepted for credit.  Numeric answers in cells will not be accepted.                                                       You have been given the following information on a call option on the stock of Puckett Industries:                                                 P =     X =                         t =     rRF =   e-rRFt =                     s =                                                             a. Using the Black-Scholes Option Pricing Model, what is the value of the call option?                                                 First, we will use formulas from the text to solve for d1 and d2.                               Hint: use the NORMSDIST function.                 (d1) =   N(d1) =                                                         (d2) =   N(d2) =                                                       Using the formula for option value and the values of N(d) from above, we can find the call option value.                                               VC =                                                                                           b. Suppose there is a put option on Puckett’s stock with exactly the same inputs as the call option. What is the value of the put?                                                                 Put option using Black-Scholes modified formula  =                                                             Put option using put-call parity  =
Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
4.9
Sitejabber
4.6
Trustpilot
4.8
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.