19-1 There are various ways to calculate the price of a call option using the Black-Scholes model. Below is a spreadsheet that breaks the required formulas into pieces to make it easy to work with. Column (1) shows the various inputs. The first five cells are the required inputs for a non dividend paying stock. The remainder of the cells are the formula parts. Column (2) shows a solved problem for a stock selling for $50, with an exercise price of $45, an interest rate of 6 percent, 90 days (one-quarter of a year), and a standard deviation of 235. Column (3) shows how the cell values in Column (2) were calculated. Once you have this set up in the spreadsheet, you can calculate the price of any call option by substituting the correct values in the first five cells of column (2). Spreadsheet begins in row 2. Calculating a Call Price Using the Black-Scholes Model S X SO 45 In(S/X) r+0.50 o(t) dl 0.06 0.25 0.235 0.105361 0.087613 0.1175 1083095 0965595 0.860617 0832877 43.03084 LN(B2/B3) B4+(5)*(B6) 2 36"((B5Y 0.5) (B7+(B8*85)}/89 BIO B9 NORMSOIST(810) NORMSDIST(BIT) B2.12 d2 Nd) N(2) S'N(1) E 2.7183 0985112 6.109398 B151-(B49B5) 814-(B3B16 B13 Call Price Given a stock price of $42, an exercise price of $40, an interest rate of 6 percent, a time to expiration of 90 days, and a standard deviation of 65, solve for the call price