Assume That the Current Price of FGX Stock Is $35

question 29

Short Answer

Assume that the current price of FGX stock is $35, that a 6 month call option on the stock has a strike or exercise price of $33.00, the risk free rate is 4%, and that you have calculated N(d1) as .65 and N(d2) as .55. Use the Black-Scholes model to calculate the price of the option.

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Definitions:

Glomerular Filtration Rate

A test used to check how well the kidneys are filtering blood.

Creatinine Clearance

A measure of the kidney's ability to clear creatinine from the blood, an indicator of renal function.

BUN

Blood Urea Nitrogen; a test measuring the amount of nitrogen in the blood that comes from the waste product urea, used to assess kidney function.

Flat-Plate X-Ray

A diagnostic imaging technique involving a flat surface on which the patient lies, used to produce a two-dimensional image of an internal body part.