Please help solve in Excel. Suppose there is a stock that has a current price of $89.50. The risk free rate is 1%. There is an option with a price of $8.67 and a strike price of $85. This option will expire in 4 months. What is the implied volatility of this stock?
Please help solve in Excel. Suppose there is a stock that has a current price of $89.50. The risk free rate is 1%. There is an option with a price of $8.67 and a strike price of $85. This option will expire in 4 months. What is the implied volatility of this stock?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter5: Financial Options
Section: Chapter Questions
Problem 5P
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Please help solve in Excel.
Suppose there is a stock that has a current price of $89.50. The risk free rate is 1%.
There is an option with a price of $8.67 and a strike price of $85. This option will expire in 4 months.
What is the implied volatility of this stock?
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