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Suppose the current stock price is $40 and a call option with a strike price of $45 expiring in 4 months is available. There is

Suppose the current stock price is $40 and a call option with a strike price of $45 expiring in 4 months is available. There is no dividend expected. Riskfree rate is 3% per annum with continuous compounding and stock volatility is 40% per annum. Calculate the call price using the BlackScholesMerton formula.

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