Question $5$

$10pts$

Melman Pharmaceuticals' common stock is currently selling for $$49\mathrm{.}50.$ They have both calls and puts with an exercise price of $$50\mathrm{.}00,$ and both options have three months until expiration. The standard deviation of Melman's returns is $18\mathrm{.}0\%.$ If the risk$-$free rate is $3\mathrm{.}25\%,$ what is the theoretical price of the call options?