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Suppose that the continuously compounded interest rate is 5%. Furthermore, the logarithm lnSt of the price of a stock has variance 100 . Suppose that

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Suppose that the continuously compounded interest rate is 5%. Furthermore, the logarithm lnSt of the price of a stock has variance 100 . Suppose that the current price of the stock is $120 per share. Find the price of a call option with maturity five years past the current time, and strike price equal to $130. Note that the variance of the stock price involves a square, so the correct units are dollars squared

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