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The current stock price of Georgia Pacific is $185, and the stock pays continuous dividend of 27%. The instantaneous risk-free rate of return is 3.5%.
- The current stock price of Georgia Pacific is $185, and the stock pays continuous dividend of 27%. The instantaneous risk-free rate of return is 3.5%. The instantaneous standard deviation of Georgia Pacific's stock is 41%. You want to purchase a call option on this stock with an exercise price of $155 and an expiration date 730 days from now. What is the call premium using Black-Scholes option pricing model?
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