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Use the Black-Scholes Model to Determine the Option Price for the May

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Essay

Use the Black-Scholes model to determine the option price for the May 35 call for Nibblers as of April 18, 2015. The expiration date for this option is May 18, 2015. The annualized interest rate on a T-bill that matures that same day is 3.0%. Nibblers stock closed at 36. The historic variance for Nibblers is .25. Assume a 365 day year.


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The influence and authority someone holds as a result of their expertise, skills, or knowledge in a specific area.

Unbiased Way

An approach or method that is fair and impartial, not favoring one side or outcome over another, often important in research, reporting, and decision-making processes.

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The ability to compel or force someone to do something through threats or pressure.

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A form of influence derived from being admired and respected, often due to charisma or personal traits.

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