Question: Please show every math step. An analyst is interested in using the Black-Scholes model to value call options on the stock of Ledbetter Inc. The

Please show every math step. Please show every math step. An analyst is interested in using

An analyst is interested in using the Black-Scholes model to value call options on the stock of Ledbetter Inc. The analyst has accumulated the following information: . The price of the stock is $40 The strike price is $40. . The option matures in 3 months (t 0.25) The standard deviation of the stock's returns is 0.40 and the variance is 0.16. The risk-free rate is 12 percent. Using the Black-Scholes model, what is the value of the call option? A. $1.88 B. $2.48 C. $3.76 D. $4.20 E. $5.12

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