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For a European call option on a stock, you are given: (i) The price of the stock is 50. (ii) The time to expiry is

For a European call option on a stock, you are given:

(i) The price of the stock is 50.

(ii) The time to expiry is 9 months.

(iii) The strike price is 50 image text in transcribed

(iv) The continuous dividend yield of the stock is 2%.

(v) The continuously compounded risk-free interest rate is 5%.

(iv) The price of the call option is 5.09.

Calculate the implied volatility of the stock using the Black-Scholes formula

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