Determine the price of a european call option

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Question

Use the Black-Scholes model to determine the price of a European call option on a non-dividend paying stock when the stock price is $37.50, the strike price is $40, the risk free rate is 4% per year, the volitility is 21% per year, and the time to maturity is seven months.

The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132036190

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