Question: Let S = $58, s = 44%, r = 4%, and d = 2.5% (continuously compounded). Compute the Black-Scholes price for a $60-strike European call

Let S = $58, s = 44%, r = 4%, and d = 2.5% (continuously compounded). Compute the Black-Scholes price for a $60-strike European call option with 3 months until expiration.

Option D is correct, but how? Can you provide solution for Excel? formulas and steps or actual excel work sheet please?

Answers:	a. $6.06
	b. $4.06
	c. $5.90
	d. $4.29
	e. $0.00

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