Find the price for a call option with the inputs

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Black-Scholes Model

Use the Black-Scholes model to find the price for a call option with the following inputs: (1) current stock price is $32, (2) strike price is $35, (3) time to expiration is 6 months, (4) annualized risk-free rate is 3%, and (5) variance of stock return is 0.26. Round your answer to the nearest cent. In your calculations round normal distribution values to 4 decimal places.

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Reference no: EM131309696

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