Question: EUROPEAN OPTION USE BLACK-SCHOLES CALL WITH DIVIDENDS Problem 2 >> Intro The current price of a stock is $669 and the annual standard deviation of

EUROPEAN OPTION USE BLACK-SCHOLES CALL WITH DIVIDENDS

Problem 2 >> Intro The current price of a stock is $669 and the annual standard deviation of the rate of return on the stock is 31%. The stock is expected to pay a dividend of $2.03 in 3 months. A European call option on the stock has a strike price of $670 and expires in 0.4 years. The risk-free rate is 2% (continuously compounded) Part 1 SB Attempt 2/8 for 10 pts. What should be the price (premium) of the call option? 0+ decimals Submit

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