Published by admin on September 15, 2020 ThefollowingarepricesofoptionstradedonMicrosoftCorporationwhichpaysno dividends.CallPutK=85 K=90K=85 K=901month2.751.004.507.503month4.002.755.759.006month7.756.008.0012.00Thestock is tradingat $83 andthe annualizedriskless rate is 3.8%. The standard deviation in ln stock prices (based upon historical data) is 30%.a.Estimate thevalueofathree-monthcallwithastrikeprice […]