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  3. a stock trades for $46 per share. a call option on

A stock trades for $46 per share. A call option on that stock has a...

60.1K

Verified Solution

Question

Finance

A stock trades for

$46

per share. A call option on that stock has a strike price of

$54

and an expiration date

three

months in the future. The volatility of the stock's returns is

37%

and the risk-free rate is

6%.

What is the Black and Scholes value of this option?

Answer & Explanation Solved by verified expert
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