Use the Black-Scholes formula to find the value of a call option on Capybara stock. Show your work. Time to expiration = 1 year Standard deviation = 50% per year Exercise price = $115 Stock price = $100 Interest rate = 8% per year Dividend Yield = 2% per year Standard Deviation of stock’s rate of return = .5 (50% per year)
2-1 Discussion: Diverse PerspectivesPossible Points: 40 Food is a staple in each person’s life. It is a way we learn about cultural values and society.
2-1 Discussion: Diverse PerspectivesPossible Points: 40 Food is a staple in each person’s life. It is a way we learn about cultural values and society. It gives us many different perspectives while simultaneously bringing us all together through shared experiences. Identifying and understanding diverse perspectives adds value to creative works. In