Multiple Choice
If the stock price is 44,the exercise price is 40,the put price is 1.54,and the Black-Scholes-Merton price using 0.28 as the volatility is 1.11,the implied volatility will be
A) higher than 0.28
B) lower than 0.28
C) 0.28
D) lower than the risk-free rate
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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