Business
Business, 02.12.2020 16:50, Sumthin4695

The Dow Jones Industrial Average on July 20, 2016, was 18,580 and the price of a September 185 (European) call option on the index was $3.35. Used the DerivaGem software to calculate the implied volatility of this option. Assume the risk-free rate was 0.7% and the dividend yield was 2.75%. The option expires on September 16, 2016. Estimate the price of a September 185 put option. What is the volatility implied by the price you estimate for this option

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The Dow Jones Industrial Average on July 20, 2016, was 18,580 and the price of a September 185 (Euro...

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