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Use the Black scholes model to calculate the price of a six month at the money European call option on December gold features. December gold
Use the Black scholes model to calculate the price of a six month at the money European call option on December gold features. December gold features are currently trading at 1300 usd per out. Assume the volatility of future contract and of gold are both 40% per annum. The risk free rate is 4% per annum and gold yield rate is 2% per annum both continuously compounding
What is the value of the European call is dollars, so the percent cost?
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