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  3. let s = $52, s = 20%, and r = 7% (continuously com

Let S = $52, s = 20%, and r = 7% (continuously compounded). The stock is...

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Finance

Let S = $52, s = 20%, and r = 7% (continuously compounded). Thestock is set to pay a single dividend of $1.10 nine months fromtoday, with no further dividends expected this year. Use theBlack-Scholes model (adjusted for the dividend) to compute thevalue of a one-year $50-strike European call option on thestock.

Answer = $6.43 Please solve and show all work. Thanks

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Let S = $52, s = 20%, and r = 7% (continuously compounded). Thestock is set to pay a single dividend of $1.10 nine months fromtoday, with no further dividends expected this year. Use theBlack-Scholes model (adjusted for the dividend) to compute thevalue of a one-year $50-strike European call option on thestock.Answer = $6.43 Please solve and show all work. Thanks

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