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A call option has a strike price of $10, and a time to expiration of 0.6 in years. If the stock is trading for $17,

A call option has a strike price of $10, and a time to expiration of 0.6 in years. If the stock is trading for $17, N(d1) = 0.5, N(d2) = 0.12, and the risk free rate is 5.60%, what is the value of the call option?

Round the answer to two decimals.

Answer:

7.56 (7.34)

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{S}*0.5 - {X}*0.12*exp(-{r}*{t})

I would like to understand how to arrive at the 7.34 answer.

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