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Problem 3 . Use Black - Scholes Formula to calculate the call price of a European call option with: S 0 = 2 0 ,

Problem

3 .

Use Black

-

Scholes Formula to calculate the call price of a European call option with:

S_{0} = 20,

K = 20, r = 5, c = 0, = 40 %, T = 5

;

(

round to two decimal digits

) .

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