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Use the Black-Scholes model to determine the price of a European call option on a non-dividend paying stock when the stock price is $37.50, the

Use the Black-Scholes model to determine the price of a European call option on a non-dividend paying stock when the stock price is $37.50, the strike price is $40, the risk free rate is 4% per year, the volitility is 21% per year, and the time to maturity is seven months.

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