Use black-scholes model to find price for a call option

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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 $30, (2) strike price is $35, (3) time to expiration is 4 months, (4) annualized risk-free rate is 5%, and (5) variance of stock return is 0.25. Round your answer to the nearest cent. In your calculations round normal distribution values to 4 decimal places.$

Reference no: EM131321306

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