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Mike was granted stock options on 10,000 shares of his employer's stock. The stock is currently selling for $53.93 a share and has a standard

Mike was granted stock options on 10,000 shares of his employer's stock. The stock is currently selling for $53.93 a share and has a standard deviation of 18%. The option's strike price is $52.39 and the time to maturity is 5 years. What is the value of each option given a risk-free rate of 1.2%? Assume that no dividends are paid.

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