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stock trades for $45 per share. A call option on that stock has a strike price of $52 and an expiration date six months in

stock trades for

$45

per share. A call option on that stock has a strike price of

$52

and an expiration date

six

months in the future. The volatility of the stock's returns is

39%,

and the risk-free rate is

5%.

What is the Black and Scholes value of this option?

The Black and Scholes value of this call option is

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