Unit 5 Individual Project Ricardo International Black Scholes

Assignment Name:

Unit 5 Individual Project

Deliverable Length:

1- 2 pages

Details:

Ricardo International would like you to demonstrate your knowledge of the 
Black-Scholes option pricing model by finding the call price of an U.S. call 
option with the following characteristics:

·  stock price = $60

·  exercise price = $60

·  risk-free rate is 12%

·  volatility (variance of stock returns) = 9% per year

·  time to maturity = 6 months