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Consider a European call option on a non-dividend-paying stock when the stock price is $25.00, the strike price is $28.00, the risk-free interest rate is
Consider a European call option on a non-dividend-paying stock when the stock price is $25.00, the strike price is $28.00, the risk-free interest rate is 8% per annum, the volatility is 30% per annum and there is four years to maturity. Find the current price of the option. Show your calculations.
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