A financial engineer is pricing a European call option on a stock. The stock currently trades at $50 and has a volatility of 30%. The option has a strike price of $55, an expiration date of 6 months, and a risk-free rate of 2%. Using the Black-Scholes model, what is the price of the call option?

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The detailed answer for the above question is provided below The BlackScholes model can be used to c... View the full answer