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Compute the value of a call option using the following information: Price = 40, Strike price = 35, Risk-free rate = 1%, Years to expiration
Compute the value of a call option using the following information:
Price = 40, Strike price = 35, Risk-free rate = 1%, Years to expiration = 0.5,
d1 = 0.7254, d2 = 0.4991, N(d1) = 0.7659, N(d2) = 0.6911, e(-.01*0.5) = 0.995012
Group of answer choices
-0.70
6.57
11.63
0.97
None of the answer choices are correct.
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