The Dow Jones Industrial Average on January 12, 2007, was 12,556 and the price of the
Chapter 17, Problem 17.23(choose chapter or problem)
The Dow Jones Industrial Average on January 12, 2007, was 12,556 and the price of the March 126 call was $2.25. Use the DerivaGem software to calculate the implied volatility of this option. Assume the risk-free rate was 5.3% and the dividend yield was 3%. The option expires on March 20, 2007. Estimate the price of a March 126 put. What is the volatility implied by the price you estimate for this option? (Note that options are on the Dow Jones index divided by 100.)
Unfortunately, we don't have that question answered yet. But you can get it answered in just 5 hours by Logging in or Becoming a subscriber.
Becoming a subscriber
Or look for another answer