question archive Suppose that observations on a stock price (in dollars) at the end of each of 6 consecutive weeks are as follows:                                                  20

Suppose that observations on a stock price (in dollars) at the end of each of 6 consecutive weeks are as follows:                                                  20

Subject:FinancePrice:2.86 Bought3

Suppose that observations on a stock price (in dollars) at the end of each of 6 consecutive weeks are as follows:

 

                                               20.0 21.2 23.6 21.9 20.5 21.7

 

Estimate the annualized volatility of logarithmic returns that is used in the Black Scholes formula. Show your calculations.

 

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE