1 Answers: Finance help needed?
Consider a nondividend paying stock. The current stock price is 100. The volatility of the stock is 0.4. The continuously compounded risk free rate is 0.06.
a.What is the price of a 105-strike call options with 1 year to expiration?
b. What is the 1-year forward price for the stock?
c.What is the price of a 1-year 105-strike option, where underlying asset is a futures contract maturing at the same time as the option?