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The current stock price of Johnson & Johnson is $62, and the stock does not pay...

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Finance

The current stock price of Johnson & Johnson is $62, and thestock does not pay dividends. The instantaneous risk-free rate ofreturn is 3%. The instantaneous standard deviation of J&J'sstock is 35%. You want to purchase a put option on this stock withan exercise price of $53 and an expiration date 72 days from now.Using Black-Scholes, the put option should be worth ______today.

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4.2 Ratings (900 Votes)
Value of Put06750WORKINGSInput DataStockPrice now P62ExercisePrice of Option    See Answer
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