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Unformatted text preview: 30% (in %) Enter the current annualized dividends on the asset $0.19 (in currency) This will result in a dividend yield of 1.70% Do you want to change this dividend yield for the life of th No (Yes or No) If yes, enter the new dividend yield for the life of the option = (in %) Inputs relating to the option Enter the strike price on the option = $15.91 (in currency) Enter the time to expiration on the option (i 3 (in years) General Inputs Enter the riskless rate that corresponds to the option lifetim 5.00% (in %) VALUING A LONG TERM OPTION/WARRANT Stock Price= $10.97 T.Bond rate= 5.00% Strike Price= $15.91 Variance= 0.09 Expiration (in years 3 Annualized dividend yield= 1.70% d1 =-0.265340041 N(d1) = 0.39537376 d2 =-0.784955284 N(d2) = 0.216239893 Value of the call = $1.16 Value of the put = $4.43...
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This note was uploaded on 01/29/2012 for the course FIN 6000 taught by Professor Banko during the Fall '11 term at University of Florida.
- Fall '11