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Posted on Jul 22, 2024

A stock trades for $42 per share. A call option on that stock has a strike price of $5 and an expiration date nine months

A stock trades for $42 per share. A call option on that stock has a strike price of $5 and an expiration date nine months in the future. The volatility of the stock's returns is 35%, 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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