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Microsoft pays no dividends. Its stock has a volatility of 25% and a current stock price of $60 per share. The risk-free interest rate is
Microsoft pays no dividends. Its stock has a volatility of 25% and a current stock price of $60 per share. The risk-free interest rate is 7%. The Black-Scholes value of a one-year, at-the-money call option on Microsoft stock is closest to:
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
