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A stock trades for $42 per share. A call option on that stock has a strike price of $50 and an expiration date six months
A stock trades for $42 per share. A call option on that stock has a strike price of $50 and an expiration date six months in the future. The volatility of the stock's returns is 42%, and the risk-free rate is 4%. What is the Black and Scholes value of this option? The Black and Scholes value of this call option is (Round to the nearest cent.)
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