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Calculate the price an American call option on a non dividend paying stock with the information below. Stock price is $40 Exercise price is $38

  1. Calculate the price an American call option on a non dividend paying stock with the information below. 
    1. Stock price is $40
    2. Exercise price is $38
    3. Risk free rate is 5%
    4. Volatility is 20%
    5. Six months to maturity

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