
Economics Economics Forum  Financial Mathematics, Econometrics, Operations Research, Mathematical Finance, Computational Finance 
 LinkBack  Thread Tools  Display Modes 
December 5th, 2015, 11:28 AM  #1 
Newbie Joined: Dec 2015 From: Utah Posts: 1 Thanks: 0  expected value on call option
I am not used to doing it this way and I cannot seem to get it to come out. Usually, I go off the given stock data, but in this case it is not given and they are doing parameter estimation. Can anyone explain how they are able to come up with the .3828 and .7011 for the expected growth rate and the volatility? The S = 35.36 is the stock price at time 0, or S_o where S_t is the stock at any given time t. See the links for images of what I am talking about. https://plus.google.com/u/1/11383487...75140575813364 https://plus.google.com/u/1/11383487...75140575813364 Thanks. Last edited by skipjack; December 5th, 2015 at 12:47 PM. 

Tags 
call, expected, option 
Thread Tools  
Display Modes  

Similar Threads  
Thread  Thread Starter  Forum  Replies  Last Post 
How to know which option is correct?  Ganesh Ujwal  Calculus  1  August 10th, 2014 07:32 PM 
Why is option b alone true?  GovindBalaji  Elementary Math  6  May 6th, 2014 08:56 AM 
European call option  floralenator  Economics  1  September 9th, 2013 07:59 AM 
How to choose the best from two option?  nfsmwbe  Applied Math  5  April 6th, 2012 08:59 AM 
Determine the cost of a European Vanilla Call option  brumburn  Economics  1  November 28th, 2008 04:33 AM 