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1. Use the Black-Scholes model to price a call with the following characteristics: Stock price = $62 Strike price = $70 Time to expiration =

1. Use the Black-Scholes model to price a call with the following characteristics: Stock price = $62 Strike price = $70 Time to expiration = 4 weeks Stock-price variance = 0.35 Risk free interest rate = 0.05

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