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Use the Black-Scholes option pricing model for the following problem. Given: stock price=$60, exercise price=$50, time to expiration=3 months, standard deviation=35% per year, and annual
Use the Black-Scholes option pricing model for the following problem. Given: stock price=$60, exercise price=$50, time to expiration=3 months, standard deviation=35% per year, and annual interest rate=6%.No dividends will be paid before option expires. What are the N(d1), N(d2), and the value of the call option, respectively?
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