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Using the Black/Scholes Option Pricing Model, calculate the value of the call option given: S=74; X=70; T=6 months; s 2 =.50; Rf =10% What is

  1. Using the Black/Scholes Option Pricing Model, calculate the value of the call option given: S=74; X=70; T=6 months; s2=.50; Rf =10%
  2. What is the intrinsic value of the call?
  3. What stock price is necessary to break-even?
  4. ) If volatility were to decrease, the value of the call would ___________?

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