Question: 1. (10 points) Using the Black/Scholes Option Pricing Model, calculate the value of the call option given: S= 74; X=70; T=6 months; =.50; Rf =10%

1. (10 points) Using the Black/Scholes Option Pricing Model, calculate the value of the call option given: S= 74; X=70; T=6 months; =.50; Rf =10% (3 points)

What is the intrinsic value of the call?

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