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The current stock price of Johnson & Johnson is $74 and the stock does not pay dividends The instantaneous risk free rate of return is 4% The instantaneous standard deviation

The current stock price of Johnson & Johnson is $74, and the stock does not pay dividends. The instantaneous risk-free rate of return is 4%. The instantaneous standard deviation of J&J's stock is 25%. You want to purchase a put option on this stock with an exercise price of $65 and an expiration date 54 days from now. Using Black-Scholes, the put option should be worth _____ today. -17 -24 9.26 9.62
 

Apr 09 2020 View more View Less

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