### Use black-scholes formula

Assignment Help Finance Basics
##### Reference no: EM13304336

Calculate the price of a 4-month European call option on a dividend-paying stock with a strike price of \$30 when the current stock price is \$34, the risk-free rate is 6% per annum and the volatility is 40% per annum. A dividend of \$1.00 is expected in 2 months. Use Black-Scholes formula.

Answer is either: 3.05, 3.65, 4.32, or 5.02

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