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Use the Black Scholes formula to find the value of a call option on the following stock. Show the steps. (8 points) Time to expiration:
Use the Black Scholes formula to find the value of a call option on the following stock. Show the steps. (8 points)
| Time to expiration: 9 months
| Standard deviation: 50% per year | Exercise price: 60
|
| Stock price: 65 | Interest rate: 3% | Dividend: 1% |
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