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Find the price for a call option

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Reference no: EM132685542

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 $34, (3) time to expiration is 5 months, (4) annualized risk-free rate is 7%, and (5) variance of stock return is 0.09. Do not round intermediate calculations. Round your answer to the nearest cent.

Reference no: EM132685542

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