$8$

$4$

Use the Black$$Scholes formula to find the value of the following call option$$Do not round intermediate calculations$$Round your final answer to $2$ decimal places$$

$1$Time to expiration $1$ year$$

$2$Standard deviation $40\%$ per year$$

$3$Exercise price $$86$

$4$Stock price $$86$

$5$Interest rate $4\%$effective annual yield$$

$9$

$4$

Use the Black$$Scholes formula to value the following options$$

A call option written on a stock selling for $$66$ per share with a $$66$ exercise price$$The stock$$s standard deviation is $8\%$ per month$$The option matures in three months$$The risk$$free interest rate is $1\mathrm{.}25\%$ per month$$Do not round intermediate calculations$$Round your answer to $2$ decimal places$$