Black-Scholes-Merton pricing formulas Suppose that So is the stock price at time zero, K is the strike price, r is the continuously compounded risk- free rate, o is the stock price volatility, and T is the time to maturity of the option. The European call price c and the European put price p are c = SoN(d) Ke='T N(d) and p = Ke='T N(-d2) SoN(-d), respectively, where In(So/K) + (1 + 02/2) T da = Inc In(So/K) + (1 - 04/2)T = di-OVT, di = ONT t = d - OVT, and the function N(x) is the cumulative probability distribution function for a standardized normal distribu- tion. (2) What is the price of a European call option on a non-dividend-paying stock when the stock price is $52, the strike price is $50, the risk-free interest rate is 12% per annum, the volatility is 30% per annum, and the time to maturity is 3 months