$1.$ Assume that the current price of DEY stock is $$25,$ that a $1$ YEAR call option on the stock has a strike or exercise price of $$27\mathrm{.}50,$ the risk free rate is $4\%,$ and that you have calculated N$($d$1)$ as $\mathrm{.}5476$ and N$($d$2)$ as $\mathrm{.}4432.$ Use the Black$-$Scholes model to calculate the price of the option.

A$)$ $$1\mathrm{.}74$

B$)$ $$4\mathrm{.}20$

C$)1\mathrm{.}98$

D$)$ $$2\mathrm{.}50$

Use the following information to answer the following:

Valuing a call option using the Black Scholes model

Current price of ABZ stock $=$ $$50$

Exercise or strike price of the call option $=$ $$48$

The maturity of the option is $0\mathrm{.}5$ years

The annualized variance in the returns on the stock is $\mathrm{.}20$

The risk free rate of interest is $3\%$ per annum

$2)$ What is the value of d$1$ that should be used when calculating the value of a call option on this stock with the Black$-$ Scholes option pricing model?

A$)\mathrm{.}33464$

B$)\mathrm{.}07483$

C$)\mathrm{.}40822$

D$)\mathrm{.}01842$

$3)$ What is the value of d$2$ that should be used when calculating the value of a call option on this stock with the Black$-$ Scholes option pricing model?

A$)\mathrm{.}33464$

B$)\mathrm{.}07483$

C$)\mathrm{.}40822$

D$)\mathrm{.}01842$