Use the Black$-$Scholes model to determine the price of a $1-$year call with a strike price of $$25,$ if the current stock price is $$24$ and the estimated annual volatility is $40\%.$ Assume the risk$-$free rate is $5\%$ and the stock pays no dividends.

answer choice

a

$$2\mathrm{.}53$

b

$$3\mathrm{.}68$

c

$$3\mathrm{.}90$

d

$$4\mathrm{.}97$