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XYZ Corporation will pay a $ 2 per share dividend in two months. Its stock price currently is $ 7 5 per share. A European
XYZ Corporation will pay a $ per share dividend in two months. Its stock price currently is $ per share. A European call option on
XYZ has an exercise price of $ and month time to expiration. The riskfree interest rate is per month, and the stock's
volatility standard deviation per month. Find the BlackScholes value of the option. Hint: Try defining one "period" as a month,
rather than as a year, and think about the netofdividend value of each share.
Note: Round your answer to decimal places.
BlackScholes value of the option
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