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You are interested in purchasing a European call on a stock. The call has a strike price of $100 and expires in 3 months. The
You are interested in purchasing a European call on a stock. The call has a strike price of $100 and expires in 3 months. The current price of the stock is $120, and the stock has a standard deviation of 40% per year. The risk-free interest rate is 6.18% per year. Using the Black-Scholes formula, compute the price of the call. (in dollars without the dollar sign, use two decimal places)
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