Question: Assume the following inputs for a call option: (1) current stock price is $25, (2) strike price is $28, (3) time to expiration is 5

Assume the following inputs for a call option: (1) current stock price is $25, (2) strike price is $28, (3) time to expiration is 5 months, (4) annualized risk-free rate is 5%, and (5) variance of stock return is 0.16.

Use the Black-Scholes model to find the price for the call option. Do not round intermediate calculations. Round your answer to the nearest cent.

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