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    Black-Scholes Option Pricing Model

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    What is the value of a 6-month put option with a strike price of $65 given the Black-Scholes Option Pricing Model and the following information?

    Stock Price $68
    Exercise Price $65
    Time to expiration .5
    Risk free rate .035
    standard deviation .15

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    What is the value of a 6-month put option with a strike price of $65 given the Black-Scholes Option Pricing Model and the following information?

    Stock Price $68
    Exercise Price $65
    Time to expiration   .5
    Risk free rate .035
    standard deviation          .15

    We will use Black Scholes Pricing Formula

    Value of ...

    Solution Summary

    Black-Scholes Option Pricing Model has been used to value a put option.

    $2.19