wilmott.com

itz very straight forward, just plug in the numbers.i am not getting the answer in the text, please try it and see what do u get? itz a callstock price =62strike = 70time to expiration = 4 weeksvariance = 0.45risk-free rate = 0.05 (annual)

i get 1.8878you are rooting the variance before you plug it in right?

the answer in the book is 1.82

That's odd - I get 1.95. It is fairly insensitive to the risk free rate, so assuming the rate is continuous vs annual doesn't explain it. Am using a vol of sqrt(.45)=.67. 0% dividend. In terms of the time, it will slightly depend on that - whether you 20/260, or 20/252, or 28/365, or 4/52, but however I do it, I can't get either 1.89 or 1.82.

yes, i got about 1.9....thatz y i am posting this here...

1.95 from my model

sorry tired idiot last night, entered the risk free rate as 0.05%....foolwhen i enter 5% i get 1.95 too

I don't have the formula for BS -- how do I come about your answer?Thanks!

google black scholes, or look in hull or wilmott

Ok, here is a new one, same i cant get the answer in the book, please confirmI dont know if the rates are annual, the question just gives them without indicating anything elseCALLstock price= 70excercise = 90time to expiration = 6monthsvariance = 0.35risk-free rate 0.06please post whatever u get

the answer in the book is 20 something...i cant get that much

i get 6.1320 sounds way way to high?!what book are you using?

yes man,,i got the same...i used some online Black scheloes calculator too....it should be around 6fuck that book,,,it is Corporate Finance by Ross ...

dump that shit,expensive too isnt it?write to him

Black-Sholes Calculator / Just plug-in numbersFrom the Downloadable File extract program BLACK_SHOLES to your desktop and execute.added value : Graphs + Greeks