Question: Let S = $74, s = 26%, r = 7.5%, and d = 1.5% (continuously compounded). Compute the Black-Scholes price for a $75-strike European call

Let S = $74, s = 26%, r = 7.5%, and d = 1.5% (continuously compounded). Compute the Black-Scholes price for a $75-strike European call option with 9 months until expiration.

a. $0.00

b.$7.66

c. $5.67

d. $5.38

e. $4.38

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