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Evaluate and compute call and put options price for Star Ltd with reference to Black Scholes’...

  1. Evaluate and compute call and put options price for Star Ltd with reference to Black Scholes’ option pricing model, with a dividend payout of $ 2 in 30 days

Star Ltd stock price                          = $ 60.25

Exercise price                                    = $ 50

Risk free rate                                     = 5.24%               

Call maturity                                       = 270 days

Stock volatility                                   = 0.45

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Cal (60. 252 C) b.18 oPti or) 0 .65 45. 435 33.8 call tion11.635 N (0,7-r)こ 0.78 N (0.3803-065 0.0 393 S N(-d O. 0393 N(-03803) (60-5N(-0-) $60.25$2 e 0.004 N C--3 803 No-O-77) 0.22 put option $50 CL.o4) C35) 58.25) (0.22 18-2-$12.815 o ption 5.385

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